Amidst conflicting advice on technical analysis strategies, selecting the best approach can be daunting. To cut through the noise:
- Assess the credibility of sources, prioritizing those with proven track records in the market.
- Test different methods on historical data to gauge their effectiveness before applying them live.
- Align strategies with your specific trading goals and risk tolerance for a tailored fit.
How do you filter advice to refine your technical analysis practices?
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To filter advice and refine your technical analysis practices: Assess source credibility: Prioritize sources with proven track records. Backtest strategies: Test different methods on historical data to gauge effectiveness. Align strategies with goals: Choose approaches that align with your trading goals and risk tolerance. If you're considering two conflicting trend-following strategies, assess the credibility of the sources recommending them. Backtest both strategies on historical data to compare performance. Choose the strategy that aligns better with your goal (e.g., long-term capital gains) and risk tolerance (e.g., moderate risk). By considering these factors, you can make informed decisions and refine your technical analysis practices