Would TA still work if you were the only person in the world who used it?
For example, I can’t understand why price is likely to be effected in any way by Fibonacci levels, unless many other traders are using them…
Thanks
No, it would not work.
TA uses mass population price levels, levels which a lot of people are already or have eyeballed in the past, which is why they are relevant. The charts at the end of the day, ignoring fundamental analysis, show the mass psychology of the entire market. So in short, yes you are correct.
So technical analysis is not the scientific approach it appears to be? That’s discouraging. :31:
Well it’s a statistical analysis, so it’s scientific enough. But statistics uses past data to show what happened in past, not what will happen in future. That is left to clairvoyant people…
I don’t see it that way.
Technicals were apparently there to find, so something was occurring frequently enough naturally in order for someone to notice it.
Great question - but change it to - would TA still work without charts?
Or maybe, did TA work without charts?
Recently, fibre fell on a rumour, it stopped at a fib, why, bank buy orders waiting - it was a rumour, if you are buying something and it becomes cheaper - what to do? - you buy some more.
Why the fib? - well it agreed with a round no. (pretty senseless setting large buy orders at obscure numbers like 3374)
So why 3400 then? - well if price is going to fall on a manufactured rumour, maybe the best place is your current cost in the first place (i.e. your averaged cost)…
And what is that? … oh take price from where I started to buy until where I last bought and divide by 2 - you will be close.
That’s the 50% fib… hmmm, ok smart guy, how did you know where I bought from? … that’s TA.