Technical Analysis on Trial
Following investment advice from self appointed TA Champions.
Preface:
Financial markets are considered to be prediction proof machines: the current price of something like Gold, Apple Stock or Bitcoin should reflect the agreed upon present and future value that market participants arrive to by buying and selling with the available information, thus future prices will reflect intrinsic and external events that are unknown, so nobody has a better chance of profiting ( unless there’s inside trading ), and most importantly predicting is a guess about future events.
What if someone told you that they could predict the market with 100% accuracy based solely on their observations of price movements ?
TA ( Technical Analysis ) does precisely that, and listen, I am not here to tell you all of it is snake oil just because I say so, I personally don’t touch the stuff, but I’ve always been curious as to how effective or ineffective it truly is, who knows, I might be wrong.
Thankfully there are tons of TA Gurus out there making daily recommendations based on charts and patterns, so in the interest of doing something more scientific, let’s take a sample and see what happens…
“ In god we trust, all others bring data. “
