Essay: What is Technical Analysis?

I'd like to give my understanding of how and why Technical Analysis works. It's a comingled effect of my training as a scientist, business executive and music. So, yes, it's a perspective through my set of unique lenses and just perhaps, our lenses could have some phasic overlaps.

Sentiment drives all price actions. This sentiment is an aspect of duality composed of Fear & Greed. These are opposites of each other and each alone can not be in this world. Both move in waves or cycles and all according to the Fibonacci Golden ratio. Nature's biology to the spirals of the galaxies and the helix of our DNA strands abide by this Golden Ratio. Sentiment is no exception.

Einstein's Equation: E=MC2

This equation embodies sentiment. Allow me to explain. In the equation, C2 is speed of light that posseses the photoelectric effect, and the basis of all life begins with light. This is shown by plants being able to convert light into energy using water and CO2. So, the energy contained in light can be converted to mass, in other words transferred.

Having said the above, sentiment is an expression of energy that is chemically conferred. All biologic material absorbs specific light frequencies. The amino acids have an aromatic molecular ring and these are designed to absorb uv light of a specific frequency. What happens when your skin absorbs sun light? It gets warm. There is no difference at the molecular and atomic scales, when light is absorbed, energy is gained. This is called the photoelectric effect for which Einstein was awarded the Nobel Prize. This is why AM sunlight contains more UV-a light and has significant impact on your hormone homeostasis while PM sunlight is more rich in UV-b which activates your vitamin D synthesis as well as sulfates cholesterol. Water is the most dielectric molecule and thus essential for life. It also absorbs light in the form of EZ (Exclusion Zone) and coherent structures that allow water to have semindocutor like properties that surrounds every protein in our bodies. When water takes on EZ structure, it has a plasma crystal structure and acts similar to a semiconductor which is paramount to enable interaction with photoelectric effects and magnetism. So, getting a good dose of sunlight is critical to good health.

When hormones absorb light, it is a quantum event. The gain of energy in a living being in effect reduces entropy. If entropy is allowed to go to equilibrium, then you have a dead body, a non-living mass. So, thoughts and feelings are quantum events. To me, this means that sentiment has to follow the laws of E=MC2.

All the above might seem gibberish and you might be thinking that whatever @haejin's smoking must be the real good stuff! LOL!

I had earlier indicated that sentiment is another form of conferring energy. For me, the bottom line is that not much can come before sentiment except thought and before that is Perfect Thought. There is a famous saying: "what are words but symbols of symbols; hence twice removed from reality." So, thought is expressed as sentiment, a form of conferred chemical energy, which is reflected and expressed in two primary modes: Fear and Greed. For cryptos, such expression is seen in its price actions. This is also why measuring price movements can't be perfect as all techniques are twice removed from "reality". This is why Elliott Waves need updates and edits with new price action data as it only measures the reflection of sentiment.

It's important to remember that no Technical Indicator is less than "Twice Removed" from reading sentiment. The only object that can be "once removed" is called a Crystal Ball and unfortunately no living body possesses that. This is why experience is so vital to enhancing the accuracy of TA. More specifically, failure experiences. I'm a firm believer that failures teach better than successes. A novice pianist will always be poor compared to a seasoned pianist. A novice in TA will always be poor compared to a seasoned Technical Analyst.

I humbly state the following: As a Technical Analyst, I thought I was pretty good after five years and really good after 10 years. Now, after 15 years, I've realized that I'm still improving.