Traders Laboratory - View Single Post - Technical Analysis: Is it voodoo? Or does it work?
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Old 08-21-2006, 07:34 PM
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Hey J.Lee, thought you might want to take a look at this article:

Why does technical analysis work?


Thanks Lisa. I like to emphasis more on classic price patterns. I do recognize candlestick patterns but these patterns are not taught in trading books. They are patterns that I just recogniize from years of trading experience. I do not look for standard price patterns such triangles and flags. Instead I look at the bigger picture. For example, one particular pattern I see over and over again is a low, a higher low, then a 61.8% fib retracement from the swing low to the swing high. To me this pattern represents a low in place and will usually look for a long entry at or near the fib line.

Most of my trading methodology involves pivot points and market profile. These are technical tools but different from technical indicators such as Moving Averages, ADX, RSI, MACD, etc... I do not like using lagging indicators. I like to base my trading on price action alone. I hope this clarifies things.

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