False Pretenses of Technical Analysis
First, let me clear out what I mean by False Pretense. I mean that there are some People who think that the Market will follow the Lines Drawn by any Technical Analyst. I strictly Disagree on this Part.
You must realise that not every TA is a skilled TA. Some have just started and their accuracy is not as good as the one of some veteran TA's, who have been analysing the market for several years and been trading profitably. 90% of traders loose all their trading money within 2 years.
At one point of Time even I believed that Market is supposed to follow those Lines. But the fact is Technical Analysis Tools provide you a general estimate of the Price a certain Cryptocurrency could go to or the path it might take to reach there.
For example if you find a good Technical Analyst and he says that a certain Cryptocurrency will surge upto 10 USD. He means that it could be in the Vicinity of that Price not the actual amount. It could be Higher or Lower than what he showed in his Analysis.
I have seen some awesome Technical Analyst here on Steemit and love their Work. I fully know that those are not Predictions but simple Analysis.
.
I am really sorry @ew-and-patterns if I something came out wrong in this Post.
All I wanted to convey is the fact the TA's give you a General Idea of the Market. For example if someone draws a Chart of BTC Price and in his/her chart BTC touches 10000 USD, he means that there is a Probability that it will reach 10000 USD.
Please I didn't mean any Disrespect.
I can even Take down this Post if you still feel this is Disrespecting.
Your support has always helped me out. Please keep supporting me.
I will be waiting for your reply.
.
It's done.
Once again I am really Sorry for the Misunderstanding.
I hope I will receive your Support hence forth.
I've tried to raise a similar point about TA, because I think a lot of newer Steemians are starting to learn about it and have a tendency to rely on it, too much.
TA is only one part of 3 types of analysis. The other two parts are Fundamentals, and Macros - which have even more effect on markets and rates of return than TA.
"Fundamentals," are factors about a token, coin, or business itself. Who runs the thing? What rules were put in place at the time of its' creation? Is it secure? It is useful? Is it widely accepted by businesses? Does it have "staying power" and the ability to adapt to changing economic trends? Does it have any weaknesses?
"Macros," are taking into account the more global trends in markets. The daily news cycle, rumors of wars and international conflicts, energy markets, transportation markets, and trends in communication technologies. What is the "big money" doing? Is the NYSE falling? Are U.S. bonds and interest-rates stable? What are futures and commodities doing?
I believe people who are newer to SteemIt also need to learn how to evaluate and pay attention to both Fundamental & Macro analysis - which I believe is a much bigger influence on the longer term Return on Investment that can be had from investing in cryptocurrencies.
Let's take the overall global market and call it a forest. Macros are looking at the whole forest. Fundamentals are looking at one whole tree. Technical analysis is like looking at the leaves on that treee. Now, a leaf might be a perfect leaf - it's going to grow, everything looks perfectly healthy, all signs are extremely positive. However, there is one huge problem: the forest is on fire and it's moving towards that tree. People must have the skills to be able to "zoom out" and look at the bigger picture. Otherwise, their investments are likely to get burned up.
Thanks for sharing your thoughts. I gave you an upvote and a resteem.
It’s just ONE of the tools I use. I remember when I bought activision blizzard stock some years back. The technical analysis of it was not that great. However, I was playing Warcraft at the time. Everyone on 5e system got some anniversary gift because Warcraft hit 9 million subscribers! I did the easy math 9mil times $9 a month per subscriber meant the company was making 81mil a month from this ONE game. That is why I bought that stock. I used tech analysis to time my entry. I think we should believe in the platforms of the cryptos we invest in too.
Nice information. agreed analyst can only predict the possible outcome.
Yes,I am not fan of techical analysis too.To many factors to be considered when trading crypto-like news,roumors,etc.It is risky area if you day trade,but in the long run trading can be profitable if you buy coin with good backround,good team behind it,and good idea.That means that we should do a lot of research first,and not only consider "head and shoulders" patterns.Just my 2 cents
I strictly believe Day Trading is not for General Public. There are only a handful People that make any Profit day Trading and even than they don't make Regular Profits.
I did Try Trading but it worked for a Few Days but in the long Run I did lose a Bit.
Technical analysis re not always right because of the whales that dominate the market!
That is True that's why I like to treat Technical Analysis as an Average and factor in a Depth Perception to their Lines.
That's right! The market doesn't necessarily follow what the analysts draws on their graph. Sometimes, people just get it wrong and these analysts are still people.
Yes absolutely True. But the Newbies don't know that. they feel that those Lines are Set in Stone or something.
great topic and very important information
The Technical Analysis Is not real 100% , because many factors affect the crypto
Yes it is a Huge News could have a Ripple effect on the Market
thanks friend .. because you explain well ..
Resteem bot Service! Promote Your New Post.Find New Freinds - Followers - Upvotes. Send 0.400 SBD and your post url in memo and we will resteem your post to 9000+ followers from two different account.@stoneboy and @vimal-gautam.