I Stopped Using Technical Analysis. Here's What Happened

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[ErixZ]

of course you need to look at charts if you are putting a directional trade, tasty ppl usually focus more on delta neutral and volatility and theta plays so no need for charts

[terrencerussell]

There’s a member that a caddie Eric Dinowitz who use to be on the floor in the past who traded options. He told me that he only traded volatility and used no charts so this is cool to hear them go into more detail about it .

[DC_J]

I used to use so many patterns and studies that my charts looked like abstract art. Nothing worked consistently. Every win was basically a lucky shot, and too few to make a difference. I finally stopped relying on them for any sort of tell in the market.

[bryanmcb]

Great Video Errol!! I am about 2 years into seriously trading options and I am with Jermal on using Technical Analysis. I like to use it as a tool! I feel that you have to get real comfortable with support and resistance of the certain stock or ETF . Tasty is great ! Always pumping out great knowledge!

[wyatthale]

The only technicals I look for are volume levels near the edge of the expected move. I feel like it helps me see if the premiums are worth the risk of that certain level. But IV is the first thing I look at. Then I try to look for any skew on the Put and Call side. That helps me choose a direction. More bang for your buck

[tomvigor]

Tasty employees appear to use virtually nothing except Implied Volitility to enter trades. Technicals and fundaments appear to be given very little weight. I am not opposed to using volititlity BUT there is no measurable metric indicating trading by primarily using implied volitility actually works. No offense but it would seem that measure of sucess should be available if it actually worked.

[ChaceBonanno]

TA has been proven to not work. It has worked, but those occurrences were simply outliers. In other words, when it has worked, it was just luck. You wouldn’t do something that doesn’t work 99% of the time just because it works 1% of the time, hoping that you get lucky. If you’re gonna get lucky with your trades/investments, you will regardless of why you made that trade. Whether you used TA or not, the success of your trade ultimately does come down to luck. The markets are extremely efficient, and as a result unpredictable. If you guessed right, no matter how educated or uneducated your guess was, you just guessed and got lucky.

[smartoptionstrader]

9:24 they have the same dentist I think

[Notrocketscience]

Given the number of technical and fundamental analysis that have to rely on selling their information instead of trading on it, I don’t think any of it works.

This was true along time ago, too and is the reason Benjamin Graham and his student Warren Buffett simply look for value or should I say, undervalued securities. Their assumption being that eventually the market will recognize that securities value and fully price it there by beating the averages.

[blucuzzin]

absolutely love it, more than 1 way to Rome, i was the same way first TA, now I mostly look at the chain, implied vol and Expected move then put that baby on and move on to the next trade!

[quarkzilla]

"Psychology painted on a chart." Exactly the point. Shows you group behavior and suggests where the "pockets" may be that Jermal talked about. I'll take a look *after* I've identified tasty mechanics in a spread.

[XSKLTON]

Personally I place my positions on the historical supply/ demand areas to at least have a small directional bias. That and the big events like JPow and CPI announcements recently. Other than that I try to stay tastytrade mechanical, open trades at ~45 days and manage at 50% or 21 DTE.

[CanadianOptionsTrader]

Great discussion! Personally, I never look at charts and I've been fairly successful over that past decade or so trading options.

[macster]

thats not a flag, flag is parallel channel in design sloping downwards if bullish with a impulse move. Yours was symmetrical triangle.

[DoubleFractals]

I have invested time in trading mainly since 2018. I started using Machine LEarning techniques. That did not work. Then I went into Technical analysis, and to be honest, that doesn't work for me to this day. I have yet to find some patterns or rules that are repeatable or can be repeated with a certain probability. Diving deeper into the concept of price action and how it is either random or completely predicable, I feel like I am right where I started in 2018, with some information I found along the way.

[johnl]

You mentioned you were looking for a certain credit for the delta between .20 and .30. What are you usually looking for?

[BGuerrilla]

Getting the point was to keep it simple, but in this particular example is IVR kinda low, any suggestion?

[marysmith]

Great video. The only charts I look at have standard deviations & linear. When you look at charts on different time frames, I always find it interesting how the mean changes when calculated on different time frames.

[jonr]

The only technical signal that's the most consistent is macd and it is very slow to change, so directionally it works. Oscillators will kill you unless you and tend to invalidate at peaks and troughs. Fibonacci and moving averages are great for determining price magnets but basically tasty is great in teaching you to find the value and trade on value. Volume flows are great to watch if you can decipher but it only tells the past.

[sadikibarro]

When do you take profit? Not using TA?