SearchTradingGuidesTheMonsterGuidetoCandlestickPatternsThePriceActionTradingStrategyGuideTheBestTradingBooksofAllTimeThe5BestTrendIndicatorsThatWorkThe5TypesofForexTradingStrategiesThatWorkTheSupportandResistanceTradingStrategyGuideTheMovingAverageIndicatorStrategyGuideTheCompleteGuidetoFindingHighProbabilityTradingSetupsHowMuchMoneyCanYouMakefromTrading?SwingTradingStrategiesThatWorkAboutRaynerTeoRaynerTeoisanindependenttrader,ex-proptrader,andfounderofTradingwithRayner.HeisthemostfollowedtraderinSingaporewithmorethan100,000tradersreadinghisblogeverymonth...ContinuereadingDoesTechnicalAnalysisWork?(It’snotwhatyouthink) LastUpdated:October28,2020ByRaynerI’msureyou’vewondered…“DoesTechnicalAnalysiswork?”“Istradingassimpleasdrawingafewlinesonthechart?”“IsTechnicalAnalysisallIneedtobecomeaprofitabletrader?”Now:YoumightsayYesbecauseeverythingyouneedtoknowisonapricechartYoumightsayNobecauseyouneedtocombinefundamentals,news,etc.So,who’srightandwho’swrong?Well,that’swhatyou’llfindoutintoday’spost(andit’snotwhatyouthink).Orifyouprefer,youcanwatchthistrainingvideobelow…WhatisTechnicalAnalysisandhowdoesitwork?TechnicalAnalysisreferstousingpastprices(orvolume)tomakeyourtradingdecisions.Thiscanbetoolslikecandlestickpatterns,chartpatterns,technicalindicators,trends,etc.Andthisbringsmetoanimportantquestion…DoesTechnicalAnalysiswork?First,howdoyoudefinewhetherTechnicalAnalysisworks,ornot?Here’show…I’llbacktestatradingstrategyusingTechnicalAnalysisBenchmarktheresultsagainstabuyandholdapproachontheS&P500Now…Ifthetradingstrategycanbeatabuyandholdapproach,thenwecanconcludethatTechnicalAnalysiswork(butmoreonthatlater).Sowhat’sthebenchmarktobeat?Ifyoulookbackhistorically,abuyandholdapproachontheS&P500hasareturnofabout10%ayearwithamaximumdrawdownof56%.Movingon…Howdoyoudevelopatradingstrategythatbeatsthemarket?Here’show:ReadresearchpapersandfindoutwhatworksinthefinancialmarketsExtractthetradingstrategyDevelopyourtradingstrategyVerifyyourtradingstrategyLetmeexplain…1.Readresearchpapersandf