I keep hearing it's basically astrology, you're forcing an idea into data that is utterly stochastic etc. I don't trade, but I am trying to understand both sides here because I personally see nothing wrong with technical analysis.
Is the disagreement coming from people who invest and not trade, so bashing TA is a way of disagreeing with trading in general? Are people who think TA is useless not very mathematically orientated in general?
I personally think looking *only* at a stock's chart to base your entire trading system is a disastrous idea, but from what I understand this is called 'chart reading' which is only a subsect of TA. However I will say the people who do this will typically have strong risk management and it becomes a statistics game.
Lastly, when someone reads a good news article of a stock and then looks at the 1 day, 5 day, 6m and YTD chart to make an investing decision, they are looking at past performance to indicate future results. Looking at these charts of even historic fundamental data is quite literally an aspect of TA — this leads me to ask, is it then the selling (trading) aspect of TA that is the problem here, and not TA?
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