Originally Posted by Jason Strasser (strassa2)
The thing that bothers me about technical analysis is that there are always a lot of rules/set ups/situations people are looking for, but there is no where that explains why.
I'll be honest, when someone tells me that a stock just passed its 200-day moving average or that its at its fibonacci retracement level, or that its MACD is positive, or that put/call ratio is x, or that its below its ichimoku cloud or that we're at wave number 4, and i ask why? The answer always sucks.
pretty much exactly my experience, and it seems the trend on many trading forums is away from the indicators you mentioned and towards 'price action', support/resistance, volume, market profile. yet, the answers to 'why' are still grossly lacking. which is why i've concluded that most have no clue what they are talking about and are just flipping coins while thinking they have a workable strategy.
then, when they lose, its not the TA strategy's fault, but its their discipline/psycology/mental/emotional issues that need to be resolved, when the fact is, the most disciplined player in the world is gonna lose playing 100% vpip full ring limit holdem
i'm still trying to figure out where the edges come in trading. if anyone has ideas please feel free..