People I come across seem to have very negative opinion towards technical analysis…they’re not professionals, just amateur home traders.
What’s up with that? What is the opinion of professionals working in the industry of TA?
Of course it’s not a holy grail that 100% of the time predicts movement but it sure as hell works often enough to be a great tool in your bag isn’t it. On 15min-1hour time scale it seems to work even better, at lest that’s how I see it.
So what’s you view on TA and why.
You might want to back up your statement with some quotes or links.
For myself, I can barely remember the last time I saw a popular thread on these forums that was advocating fundamentals over technical analysis. A few TA threads mention fundamentals but only in passing and usually to explain some unusual activity (along the lines of the Swiss / Japanese government intervention caused last night’s spike). Most of the hate towards TA seems to come from others who support a different method of TA.
What links and quotes, I am referring to real people and real conversations in the real world that I had 
When I say I use TA they refer to it as voodoo gambling and look down on me because of that.
The first rule in winning in the forex market is: “Let the rest believe it cannot be done, when in fact, there is a way around the problem”!!!
Technical analysis is powerful and usually can help you get consistent profits. It all depends on your strategy!!!:57:
FYI i think the answers you receive on these forums may be a bit biased towards technical analysis as pretty much everyone on here is trying to learn about trading currencies and learning how to read the charts with some form of technical analysis is essential.
I was very against technical analysis for a long time and was a big fan of the buy and hold, value investing discipline. I felt there was nothing that I could grasp on to and resonate with from a technical stand point until I discovered supply and demand (which is different from support an resistance).
I am not a huge fan of chart patterns though ( head and shoulders, etc.).
To me, fundamental analysis tells you what should happen and technical analysis tells you what is actually happening.
Most of the real people I talk with are barely aware of the currency market. They know more about the commodity and stock markets, but for the most part dismiss any kind of investment other than a savings account or house as too risky.
I agree with codeMeister most people I know hear forex and I tell them foreign exchange and they think people coming from other countries to go to school lol. No I am kidding they either don’t know and don’t care or they are the few that seen me trying to trade stocks and told me of forex. Matter of a fact they recommended to this site and the school. All of witch didn’t have what it took to finish the school or are still in it trying to master parts that imo are irrelevant like the names of every candle formation and all the terminology with for me don’t matter you will get it down if it is important to your trading. Heck one of them opened me up my first trading account because he owed me money for some work on some cars I did and wanted to split the risk/reward so we went 50/50 and that account is still live and profitable to this day. The reason for this is he understands fundamentals better than most people I know that trade for a living. He dont care for NFP reports and all that he understands more long term fundies witch I am starting to but have a long way to go . However I understand TA that what I do so together we make a hell of a team. Thats what I am trying to say (sorry for the ramble) but you have to have a understanding of both. Most news releases I try to stay out the market unless I have a profitable trade with risk cut out then I will wait and see after tightening up my stop. But that can be played later on a chart and it will agree with the chart. However long term fundamentals imo are something you better pay attention to as they can produce long long lasting trends that you can use your TA to play all day long and rack in pips. For an example when the G7 agreed to help drop the yen I didnt know anything about and went long. Lost my a%% of course then my boy stoped by to talk forex and told me to short the yen because of the G7. I also herd it here but what ever. You have to have both to trade. You cant just trade TA blindly or you will get slaughtered from time to time.
Whether you apply these principles to Forex or not, read this e-book http://www.purplepatchforex.co.uk/site/files/FxTraderVolumeArticle.pdf you will find it very enlightening and show how the market is manipulated against inexperienced Fundamental traders.
But of course there is an important difference between investing and trading, trading is an entirely different beast.
That’s one of the key points, here - many people assume that currency traders invest, therefore it sounds more risky than a house, savings account etc. However in truth a currency trader is looking at something far more short term, so has less exposure to the market than someone who bought, say, a house or classic car at the top of the market and now needs another top to get them off the hook. Many laypersons’ issues with trading are ones of understanding rather than considered disapproval.
I agree with you to a point, however it is possible to trade off technicals while simply using an awareness of upcoming key fundamental issues to know when to stay out of the market, such as not trading through a G7 meeting. One does not need to understand the content of the meeting to avoid trading through it. It is true that a pure technical trader will get slaughtered by an unforeseen fundamental issue from time to time, but as long as that is factored into the strategy then it need not stop long-term profitability. There are many traders in the ‘trade what you see, not what you think’ camp, who make a lot of money from it, inspite of the odd unforeseen and unexplained (at the time) loss.
Should add that I talk about trading with a number of people and have never come across any negativity surrounding TA.
Just my thoughts!
ST
The BIG problem with TA is not the method itself, it requieres much more psicological and emotional control. As i’ve said in a previous thread, i love TA and hate FA but with the last one i profit much more. It never gets me tired and alway can keep things in perspective. With a technical only system you are relying on a math calculation.
Regards.
I can agree with that I do try to keep a heads up on fundies but I always have my head stuck to deep in my charts to even consider the out side world lol