TA vs. Trading Volatility

What’s the difference between TA vs. Trading Volatility?

First, let’s consider TA

With all due respect, what most people refer to as Technical Analysis or TA relies on poor math indicators, at best, and random, subjectively drawn or placed lines and patterns that have no statistical significance. TA gives you zero information of any value about the statistics and probabilities of what is happening on the Returns in any given time frame, let alone the current or next candle, or even up to 30 candles ahead.

And that is why, it is my considered opinion (and that of many others), that TA is actually a scam, promoted by folks all the way at the top of the financial industry all the way down the the Retail Traders at the very bottom (what the so-called “smart money” call “dumb money”). It’s designed to make the Retail Traders feel smart while actually bleeding them dry. It’s one of the main components of the 90-90-90 cliche’. TA is literally the butt of many jokes in the smart money set, and among the savviest (if unscrupulous) of those that market such devices.

Now let’s consider Trading Volatility

Actual options traders, quants and market makers at HFT firms, in short, people that actually move the markets in significant amounts … they trade volatility. Standard Deviation of Returns. And of course, the randomness of Geometric Brownian Motion.

They use indicators built with proper maths and no voodoo or subjective chartist nonsense.

In Conclusion

Trading is more science than art.

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Peace, love and happy trading!