{"id":1970861,"date":"2014-04-10T13:22:14","date_gmt":"2014-04-10T07:52:14","guid":{"rendered":"http:\/\/stockviz.biz\/index.php\/?p=1970861"},"modified":"2014-09-09T12:30:36","modified_gmt":"2014-09-09T07:00:36","slug":"post-hoc-technical-analysis","status":"publish","type":"post","link":"https:\/\/stockviz.biz\/index.php\/2014\/04\/10\/post-hoc-technical-analysis\/","title":{"rendered":"Post-hoc Technical Analysis"},"content":{"rendered":"<p>Michael Harris over at Price Action Lab:<\/p>\n<div class=\"row-fluid well well-small\">Saying that \u201cif these levels hold prices will rise and if they do not, prices will fall\u201d, is a statement that confuses event order. Price moves first and then we decide whether some level or indicator was violated. If a level does not hold, it is because price already moved below it or above it. It is not the other way around.<br \/>\n&nbsp;<br \/>\nIn technical analysis, use of any derivative of price, including support and resistance levels, indicators or patterns, is often useless, unless there is a measure of the probability of some event. Otherwise, just describing these levels is either only stating the facts or it is naive analysis due to ignorance.<\/p>\n<\/div>\n<p><strong>Source:<\/strong> <a href=\"http:\/\/www.priceactionlab.com\/Blog\/2014\/04\/technical-analysts-who-have-their-cake-and-eat-it-too\/\" target=\"_blank\">Technical Analysts Who Have Their Cake and Eat it Too<\/a><\/p>\n<p><strong>Related:<\/strong><\/p>\n<ul>\n<li><a style=\"font-style: normal\" href=\"http:\/\/stockviz.biz\/index.php\/2014\/03\/25\/many-technical-indicators-boil-handful-unique-variables\/\" target=\"_blank\">Many technical indicators boil down to a handful of unique variables<\/a><\/li>\n<li><a style=\"font-style: normal\" href=\"http:\/\/stockviz.biz\/index.php\/2014\/03\/20\/chart-say\/\" target=\"_blank\">What does the chart say?<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Michael Harris over at Price Action Lab: Saying that \u201cif these levels hold prices will rise and if they do not, prices will fall\u201d, is a statement that confuses event order. Price moves first and then we decide whether some level or indicator was violated. If a level does not hold, it is because price &hellip; <\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3471,9],"tags":[815],"class_list":["post-1970861","post","type-post","status-publish","format-standard","hentry","category-investing-insight","category-your-money","tag-technical-analysis","entry"],"_links":{"self":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts\/1970861","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/comments?post=1970861"}],"version-history":[{"count":0,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts\/1970861\/revisions"}],"wp:attachment":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/media?parent=1970861"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/categories?post=1970861"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/tags?post=1970861"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}