3 ms·

Technical analysis? Is there anything statistically robust about that or is it reading time series tea leaves?

• paulpauper 4y ago
  Part of the reason why technical analysis fails so bad on stocks is because stocks are influenced by non-technical things (like profits & earnings) . Bitcoin is not like that. It's price is purely a function of supply and demand. So this makes technical analysis more useful, but this is not saying it's doable or easy. Just easier, because you have eliminated a variable. I think there are certain patterns that have repeated. The long bottoming out process is one of them.
• Yizahi 4y ago
  The only robust thing about TA is that it's an astrology for men :)
  • super256 4y ago
    It certainly works for many traders who consistently outperform the market by trading stuff like FX and Crypto. TA and trading price action can also be a tool to limit risk. Btw, selling plans of executives often involve very trivial algorithms, such as "sell when price above VWAP till price reaches <some lower bound> for 30 days or 20.000 shares sold". (Some brokerages will try to create additional liquidity in the meantime, depending on what you want and how much your security is traded).
    • Yizahi 4y ago
      Correlation doesn't mean causation. Hamsters and octopuses have outperformed hedge funds in experiments. You can outperform the market by throwing a coin to make decisions. TA has zero scientific basis and there are no proofs for any analysis TA people make.
• thricegreat 4y ago
  TA is the primary form of analysis for all financial markets. The idea is that the price contains all of the information, hidden on publicly available. It's a requirement for taking the CFA.It's widely accepted by regulators, academics, and industry professionals.