Talk:Technical analysis: Difference between revisions

Revision as of 18:37, 25 December 2012

Revision as of 15:12, 26 December 2012

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More than 3 months have passed, more than enough time to both evaluate necessary changes as its bibliography, so I put down my amendment about the definition of the term:

''"Technical Analysis is a Heuristic'''heuristic''' tool used by both professional as amateurs '''traders''' for acting over price movements of some financial instruments, with the purpose of profit by buying or selling them, trying identify best possible points for entry or exit in a '''trade'''.[1][2]''

''It is also interpreted both as a form of '''opinion research''', [3] where the '''trend lines''' and other visual or statistical patterns are perceived as "photos" of the behavior of most market participants at any given time; [4] as well as a form of '''probability analysis ''' based on the idea that prices, since they are reflections of '''cognitive biases''' of the crowds, would move according to recurrent and identifiable patterns.[5]''

''And that although it is impossible to '''forecast''' when and to what degree these patterns will recur in the future (due to the fact that '''financial markets''' are '''social environments'''), as well as be impossible in the moments which negotiations are occuring distinguish real signs of such patterns from false alarms,[6] is fairly possible to traders take advantage of this heuristic tool, provided One knows its limitations added to a rigid '''risk control'''.[7]"''

Numbers in brackets indicate references (one or two at each point) to be added. </br>

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:::::::[[Special:Contributions/177.33.159.133|177.33.159.133]] ([[User talk:177.33.159.133|talk]]) 14:43, 25 December 2012 (UTC)

::::::::(a) The meaning. (b) The source being cited. [[User:AndyTheGrump|AndyTheGrump]] ([[User talk:AndyTheGrump|talk]]) 18:37, 25 December 2012 (UTC)

:::::::::Ok, first thank you [[User:Dicklyon|Dicklyon]], [[Special:Contributions/177.33.159.133|177.33.159.133]] and [[User:AndyTheGrump|AndyTheGrump]] for your patience

:::::::::Now, let's work piece by piece to see if we got some progress

:::::::::What especifically in the 1st paragraph you didn't understood ?

:::::::::I split it here: </br>

:::::::::I - Technical Analysis is a '''heuristic''' tool used by both professional as amateurs '''traders''' for acting over price movements of some financial instruments,

:::::::::II - with the purpose of profit by buying or selling (short) them,

:::::::::III - trying identify best possible points for entry or exit in a '''trade'''. ---- ''Bold letters'' would be wiki links

:::::::::[[Special:Contributions/189.121.172.45|189.121.172.45]] ([[User talk:189.121.172.45|talk]]) 15:12, 26 December 2012 (UTC)