T/A is geared toward looking ahead, not just studying the past. Read
a book such as Nathan J. Sambul's Top Trader's Guide to Technical Analysis and you will learn how to make price targets, to know whether a 'move' has steam left, whether its the beginning, middle, or end of a move, etc. There are several subsegment of T/A that are silly, like Astrology, but the standard & widely-followed disciplines are very consistent and one cannot lose money (over say, a 1 year period) by using it and following the 'rules', such as when to cut a loss short. Most successful technicians achieve the high win/loss ratios because they use so many filters & confirmation signals before entering a position.
My knowledge of T/A is only intermediate and I don't use any excessively complicated signals - but maybe that's why I'm not a millionaire, but I'm not a technician anyway because I look at charts only to pull the trigger on a fundamental opinion. Technical analysts don't have fundamental opinions.
Steve: Agreed. |
