SNSN schreef op 26 januari 2018 17:11:
[...]
Yes, the TA (if used properly) can indeed deliver a correct forecast on diff horizons (if the 'regular/deterministic' component of stochastic price processes was identified correctly).
Basic restrictions for simple TA: i) processes are of 'diffusion' type, not those of 'Poisson-type' (it's very common at a lack of objective news), ii) price processes are stationary, i.e. do not depend upon the time (very common for st-horizons, for some stocks - for mt as well).
If briefly, to use just TA you need to know its limitations & underlying (stock) drivers, at least in general.
The TA itself is just a part of ALL trading strategies/codes.
Good luck.
PS. A 'diffusion-type' process --> prices are changing 'smoothly' (on very small time-horizons), while 'Poisson-type' --> it's actually a 'jump-type' process.