I have been studying the forex subject for a few years now and i thoroughly enjoy Babypips. I have read books on trading listen to podcasts and various videos on Youtube. I have stumbled on desire to trade podcast and an Australian well experienced trader called Paul Scott. He completely demolishes the accepted dogma of technical analysis and says all the institutional traders, not the market traders, do not use all these tools we have been training in ; rsi , macd, Bartley patterns and all the rest. He says it is all about price and market news. This has thrown me as i thought this trading training was industry standard. He jokes that in all the big firms you don’t get traders shouting how their SARS is showing you should buy/sell or that your trend lines is showing breakout as there is a volume to support this. he says it is all about price. Furthermore he says how did traders trade before we had all these tools that are software based. Trading has been going on many years before all these software tools. listen to him on Youtube on this link
"Paul Scott - Supply and Demand - How Trading Is Really Conducted In The Financial Markets" and see for yourself.
It would be good to see a counter argument to this. Would we use both dogmas at the least. He says try and look on your graph before 1st of Jan 1999 and what will you see. Interesting angle on this subject
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Most TA strategies that are sold don’t work very well, but that’s because they have been constructed to be saleable for the vendor, not profitable for the purchaser.
The simplest TA comprises buying a market that is rising and shorting a market that is falling. This works, it has always worked and it will always work, But you can’t sell something so simple so the vendors of TA-based systems, software, strategies, books, training courses, websites, signal services, EA’s and all the rest have had to pervert these simple truths in order to make some money by selling rather than make all their money by trading.