{"id":38018,"date":"2014-06-15T18:45:31","date_gmt":"2014-06-15T22:45:31","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=38018"},"modified":"2023-08-01T21:10:13","modified_gmt":"2023-08-02T01:10:13","slug":"enhancing-trader-performance-why-use-technical-analysis","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/enhancing-trader-performance-why-use-technical-analysis","title":{"rendered":"Enhancing Trader Performance: Why Use Technical Analysis?"},"content":{"rendered":"<p><em>*****David Blair, The Crosshairs Trader, is a blogger\/trader\/educator who does a wonderful job of sharing research on elite performance and how it relates to trading. Below is his latest post for the SMB trading community.***** \u2014 Editor\u2019s Note<\/em><\/p>\n<p>If you use some form of technical analysis (as I am assuming you do if you are reading this post via SMB) it is important that you establish your\u00a0intent for doing so.\u00a0\u00a0In other words, if you intend to use technical analysis\u00a0as a predictive tool you will most likely be disappointed in\u00a0its ability to consistently forecast future price action and you will most likely be considered foolish.\u00a0 However, if your intent is to use technical analysis as a way of\u00a0managing uncertainty (risk vs reward) then any losses sustained from the failure of your analysis will be considered an acceptable outcome out of several possible outcomes.\u00a0 The following articles can help us understand and accept the power and the limits of technical analysis and provide direction for our intent of its use (vs its abuse).<\/p>\n<p>Technical Analysis Defined (<a href=\"http:\/\/en.wikipedia.org\/wiki\/Technical_analysis\">Wikipedia<\/a>)<\/p>\n<p>Technical Analysis and random Walks<\/p>\n<p>\u201cThe truth is that technical analysis is indeed highly subjective.\u201d (<a href=\"http:\/\/finviz.com\/help\/technical-analysis\/introduction.ashx\">Finviz<\/a>)<\/p>\n<p>\u201cTechnical analysis is a precursor to building a good strategy.\u201d (<a href=\"http:\/\/www.finweb.com\/investing\/top-4-benefits-of-technical-analysis.html#axzz34iDuCgkV\">Financial Web<\/a>)<\/p>\n<p>\u201cTechnical analysis is only stupid if it loses us money.\u201d (<a href=\"http:\/\/www.fool.com\/investing\/value\/2010\/04\/30\/technical-analysis-is-stupid.aspx\">The Motley Fool<\/a>)<\/p>\n<p>\u201cTo my delight I discovered many successful traders and investors who had the track record to prove that Technical Analysis does work.\u201d (<a href=\"http:\/\/etfhq.com\/blog\/2013\/03\/02\/top-technical-analysts\/\">ETF HQ<\/a>)<\/p>\n<p>\u201cDespite inconsistencies in predictive value, technical analysis may be a useful tool as part of a broader strategy for managing holdings.\u201d\u00a0 (<a href=\"http:\/\/www.stockopedia.com\/content\/technical-analysis-5-reasons-to-be-sceptical-about-charting-63806\/\">Stockopedia<\/a>)<\/p>\n<p>\u201cChart patterns can be identified, but it cannot be used to predict. Chart patterns can be used as a guide to your trading system.\u201d (<a href=\"http:\/\/sias.org.sg\/beginnerguide\/03_03_Technical_Analysis.php\">SIAS<\/a>)<\/p>\n<p>\u201cBy using technical analysis to anticipate the most probable direction of a price move and keeping losses in check, it is definitely possible to pull a consistent living from the markets.\u201d (<a href=\"http:\/\/traderkingdom.com\/trading-futures-education-topics\/trading-futures-basics\/4932-does-technical-analysis-work\">Trader Kingdom<\/a>)<\/p>\n<p><strong>David Blair<\/strong><\/p>\n<p><strong>THE CROSSHAIRS TRADER<br \/>\n<a href=\"http:\/\/www.thecrosshairstrader.com\/\">www.thecrosshairstrader.com<\/a><\/strong><\/p>\n<p>no relevant postions.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>*****David Blair, The Crosshairs Trader, is a blogger\/trader\/educator who does a wonderful job of sharing research on elite performance and how it relates to trading. Below is his latest post for the SMB trading community.***** \u2014 Editor\u2019s Note If you use some form of technical analysis (as I am assuming you do if you are reading this post via SMB) &#8230; <a href=\"https:\/\/www.smbtraining.com\/blog\/enhancing-trader-performance-why-use-technical-analysis\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":290,"featured_media":35366,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1935,456],"tags":[3441,593,1609,848,1420,144],"class_list":["post-38018","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-david-blair","category-trader_development","tag-enhancing","tag-failure","tag-learning","tag-lessons","tag-performance","tag-trader"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Enhancing Trader Performance: Why Use Technical Analysis? | SMB Training<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.smbtraining.com\/blog\/enhancing-trader-performance-why-use-technical-analysis\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Enhancing Trader Performance: Why Use Technical Analysis? | SMB Training\" \/>\n<meta property=\"og:description\" content=\"*****David Blair, The Crosshairs Trader, is a blogger\/trader\/educator who does a wonderful job of sharing research on elite performance and how it relates to trading. 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