Controversial - Technical analysis and why it doesn't work.....

19 thg 8, 2020

Hi all,

This is a controversial one for sure...... all I ask is for you to ponder my video and let me know what I think....

Why am I sharing?

I used to trade this way! At the end of Q1 with Covid hitting the world, I kept finding myself on the wrong side of the moves, it got me thinking the money to be made is if I was in the trend - not trying to catch the top of bottom of the move, right? The markets will be irrational more than you are solvent is a fab quote - and is so true.

How many times have you said to yourself? It must go down soon, or it can't keep going up.

I am sure you can relate.

What did I change?

I investigated different strategies and combined them to add more confluence and ensure that I was on the right side of the market move on any big trend. Don't fight the market, be in tune with the market and follow price.

There are sometimes numerous ways to trade the same chart with technical analysis - how can you trade from a strict trading plan with so much subjectivity? How have you successfully back tested your edge with this too? What actually classes as a head and shoulders pattern, might look like one one day and not the next.

I know all of this, I can relate to it all, because it is what I used to do.

I am simply pointing out that our need to be right and find certainty in an uncertain market is not constructive nor helpful.

Let me know if this resonates with you please, or even if you disagree - that's fine too of course, I am simply trying to explain and share my views and my experience to date.

If it helps, great.

Regards
Darren