Originally posted by Zestfulmocha
Cheers, I still haven’t read all the posts yet but interesting you are using EW, is that just forex or you do the same with stocks? (from my experience EW in specs is very hit and miss, but I don’t proclaim to have ever taken it seriously enough to test properly so only an observation)
As a general observation, (off topic to FX sorry) i’m finding TA to be a lot more reliable in FX than ASX, perhaps as it’s a lot less FA driven on the day to day and more impacted by longer trend FA? (news drops don’t move FX as much as they so stocks). Although I almost exclusively play with specs, so FA and psychology (I trade this more than anything else), so that is also probably why the TA is less reliable in my experience.
I use TA only on FX and when I used to trade futures. For equities I just use a value-based strategy and might look at TA for entry. I find it easy to pick apart multiple financial documents and work out whether or not a company is under-valued.
Don't take offence to this, but TBH I find technical analysis on ASX and NZX stocks a waste of time. I think it's important to understand the TA concepts to time your entry, but we just simply don't have the liquidity to trade purely on TA. Again, this is my opinion. I tried trading US stocks for a while and found it a lot more reliable and my conclusion was due to the shear volume of shares being traded.
