@DonkeyInvestor People make the price. If a fibonacci retracement, a resistance or a trendline etc. say that the price will continue to run or turn at a certain point, then it does not just do that, but because many people look at the same indicator and think "oh the price will do this and that here" and then buy or sell. The exception to this is events, these destroy any TA.
@DonkeyInvestor But if you think about it now, institutional also use TA in some way... Of course, the institutional movements are stronger than some retail investors who see a pattern.
@Enyana donkey or Tradingmelone meant only that the bulk of the movements in the market does not come from private investors who pay attention to Fibonacci etc.. But that many TA pattern by institutional movements in the market come at all states, you can see in his volume-based strategy quite nice :) But also these use among themselves !partly! TA, so I would sign both.
@leveragegrinding yes of course the mass does not come from private investors, but to my knowledge the institutes use indicators in the same way. What else? The people who work there had to optimize their risk management before they were allowed to trade the way they do now. The strategies differ, but there are some indicators that almost everyone uses.
@Enyana@leveragegrinding let me put it this way. Most of the market is controlled by algorithms. And the only reason why FIB levels work is that algorithms trade according to certain Fib levels. Some I know some I don't know.
