Markets Adjusting to TA

[xProphet]

Markets Adjusting to TA ;
I think mass adoption and common use of technical analysis would actually make it less effective. As more and more people try and interpret patterns, PA, Elliot wave, fib and even indicators, the markets will become more and more volatile due the differences in interpretation. Consequently, rendering it useless.

I know in order for this to happen, the amount of people using TA would have be on an insanely large scale.... (These days a large number of people use some form of it.)

Whats your thoughts on it? Market adjustment to TA.

 

[Easy Trader]

I don't think technical analysis will ever be rendered useless. It morphs and changes constantly with time. There may be points of confusion but order soon prevails in some sort. In the 80's Bollinger bands were huge, they have since lost there luster and fib lines have taken there place. Soon fibs will be out and we will all be using Gann lines or something else for confluence. Much depends on how you trade your TA. Some methods are timeless and others are only good for a few months or market type.

 

[michael77]

Good point! Just use those indicators those are necessary according to your trading style and platforms. If you use too much indicators it would just confuse you at the end of the day to take better decision.

 

[Rambo35]

I do not agree that the markets will adjust to TA. While there are plenty who may try to use it, most have no idea how to use it and while we may see an increase in volatility TA has always been, is and will always be the way smart money makes money. That is my opinion on it.