Technical Analysis - do you really need it?

Ryan Cruz

Trader
Sep 25, 2014
7
0
12
Hello to all,

I know this question might sound stupid but, i really don't get why Technical Analysis is needed. I mean yes it will guide you on your trading on how the rate might go. But for me, that's just it, "it might". It's just a possibility, a guide. So for me, why do some effort making this Technical Analysis when everybody knows that it's a fact that know one will ever know which the rate will go?:confused:

I hope i didn't offend anyone but this is just a question in my head that i can't get an answer.
 

toretton

Trader
Aug 9, 2014
94
0
22
Italy, Milano
i’m TA trader, I think trading with TA is all about risk management nd having an edge on the market. My primary markets are commodities nd I’m not sure how you can dismiss the various S&R information. All I will say is the more pros you have on a trade the more likely the outcome will be.
 

vicknic

Confirmed ProfiForex Representative
Jan 21, 2014
207
5
39
Netherlands
www.profiforex.com
Technical Analysis is a very tricky part of forex. It is effective if used properly. For example, a trader who depends on technical analysis does not depend on only one indicator because they can produce false signals. Another downside is that what happened in the paste is not always going to repeat itself even when the signs are there. Therefore, technical analysis when combined with fundamental analysis becomes more effective for a trader.
 

alexflemj

Active Trader
Nov 9, 2011
69
1
27
I pay more attention to fundamental analysis, there are some basic principles that give a hint about market direction.
 

chief

Confirmed Tickmill Representative
Oct 27, 2014
217
7
37
when you asking do we need technical analysis ?
so what's you needed for your forecast then ?
first, put all away the idea we have 100% accurate while trading. even when you combine both tech and fundamental, no one will ever got this accuracy, trading activity it's long term business, it a never end business and stick with the plan are the only thing we can do.
here's the logic of most traders : analysis, confirmation and execution , next step are the anticipation process. but this sequence are not perfectly good, some said this are put at the wrong way.
the best step we can do is :
Anticipation : it;s all matters risk management, lot size, take profit stop loss level, anything correalated with scenario rule of many possible trading condition.
Confirmation : a clear view of price where it confirm our analysis, our expectation, as fundamental based comes from economic data release as confirmation. from technical view it would come from indicator confirmation, support level, candlestick formation etc.
Execution : this we start put our order, executed while we already pass 2 step above.
in short a confirmed execution without any anticipation at first place would lead into confusing, and vice versa.
hope this help.
 

fxapex

Active Trader
Jun 7, 2013
258
12
29
There are lot of things that has to be taken in consideration while making a strategy or placing a trade, and both technical and fundamental analysis are part of it, so they both are important.
 

Fxpipper

Master Trader
Oct 26, 2011
1,132
3
49
You can trade on fundamental ana. or go with technical. ana, the point being that if you are going to trade just based on the news, well, you would really need to be able to gauge how the market is going to react to the news..and the traders who trade based on funda.ana only, often have years of trading experience.

Most traders, do a mix of both, but more heavily weighed in with tech than fundamental..and no, you did not offend anyone.
 

garena

Master Trader
Jan 28, 2014
243
5
54
Hello to all,

I know this question might sound stupid but, i really don't get why Technical Analysis is needed. I mean yes it will guide you on your trading on how the rate might go. But for me, that's just it, "it might". It's just a possibility, a guide. So for me, why do some effort making this Technical Analysis when everybody knows that it's a fact that know one will ever know which the rate will go?:confused:

I hope i didn't offend anyone but this is just a question in my head that i can't get an answer.

Must have a reason why TA and FA were so popular in Forex. I can say TA helped a lot in trading. By watching resistance and support levels, we can set TP/SL for our trades but you should combine with FA to put a buy or sell trade.
 

hyperscalper

Trader
Jan 23, 2013
24
0
17
North Carolina USA
Technical Analysis is essential

Hello to all,

I know this question might sound stupid but, i really don't get why Technical Analysis is needed. I mean yes it will guide you on your trading on how the rate might go. But for me, that's just it, "it might". It's just a possibility, a guide. So for me, why do some effort making this Technical Analysis when everybody knows that it's a fact that know one will ever know which the rate will go?:confused:

I hope i didn't offend anyone but this is just a question in my head that i can't get an answer.

Technical Analysis is critical to all trading. Yes, I know, "fundamental analysis" can be used for long term trading but day to day trading requires technical analysis.

I don't mean Moving Average crossovers. That's generally useless. But Price Pattern Analytics can be useful and, in my case, completely New Ways to derive Real Time Analytics can predict where the market will move in the next few minutes.

Forex has been hampered by a lack of Time and Sales information, that's well known. But even in markets which do have T&S, like Futures markets, traders are honestly only guessing as to how that data should be used.

I've generated a Virtual Time and Sales in Forex, and so we can do Accumulation and Distribution Analysis, as well as looking at the Depth of Market Bias which tells you ahead of time (yep, amazing) where the market is moving over the next few minutes.

So the generic questions "do we need technical analysis?" should be refined, because we all agree we need "good" technical analysis; meaning TA which actually supports reliably making money, as opposed to "guessing".

In any trading "guessing" can never work in the long term. What seems "random" to one person, at one time; could change completely when reliable analytics are developed which predict price. No longer are those "wiggles" so random any more ! :)

Good Trading or Scalping !
HyperScalper