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Teruki

Questions about technical analysis/chart patterns

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Teruki

Hi,
I sometimes come across popular Youtube channels or books with good reviews that talk about technical analysis or strategies etc.
I take a look, or read books' detail on Amazon, and often find out they use Forex as examples when they explain things.
My first question is, do they apply to stock trading? My understanding is technical analysis for patterns, charting etc. work more or less the same (or very similar) in any market.  For example, the author of "Complete Guide for Volume Price Analysis (The book the Thor's seminar was based on)" says it applies to any market and any time frames. I'd assume any other analysis/patterns are the same. But I am not sure it is always the case. I often wonder if I should listen to them or read them when they talk about technical analysis but not specifically about trading stocks (and day trading).

Also, some books on technical analysis are written more than 10-20 years ago and some reviews say they are "outdated."
I don't know how technical analysis can be outdated because my understanding is the chart patterns have not changed much.
But at the same time I believe Andrew mentioned in his books that popular day trading strategies have changed over the years (or something to that effect) and that means patterns have changed too?
Also they say things are different before and after HFT and I wonder how it has affected patterns and technical analysis.

So, my other question is do technical analysis and patterns 10-20 years ago apply now?
Should I avoid books etc. on day trading, chart patterns etc. from more than 10-20 years ago?

If you have any advice, comment etc. it would be appreciated!

Thanks.
 

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Brendon

Heck naw, I still reference the Japanese Candlestick books from the 1990s (it may be older than that). Definitely not outdated, we just trade in faster time-frames now and most of the same rules apply, but there might be more factors like HFT, what exchange we are using, Tweeting lol, etc we need to be aware of. The author Steve Nison learned candlestick patterns were used by the Japanese hundreds of years ago...However some strategies may depend on the current state of the market we are in and may work more or less often at times. 

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Teruki

Thank you Brendon for clearing it up!
As a newbie, I try to learn from books, videos etc. but sometimes it's hard to know which information is relative.
Good to know old technical analysis books are not outdated.

Although it wasn't mentioned in your reply, I take it that I can learn from books etc. that use examples from other markets (like Forex) than stocks too.
(Please correct me if I'm wrong.) 

Thanks again!

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Brendon

I can't speak for the other markets as I only trade and read about the US equity markets. But the authors of a few books I read said that some of these techniques are used across the board (not sure how they hold up now though).

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Teruki
8 minutes ago, Brendon said:

I can't speak for the other markets as I only trade and read about the US equity markets. But the authors of a few books I read said that some of these techniques are used across the board (not sure how they hold up now though).

Thank you for clarifying it Brendon.
Yeah, many Youtube videos /Youtubers or some books I browsed through say something similar. It seems like they use similar techniques,  technical levels etc., so I am guessing I can still learn from them too. I do actually try to stick to videos and books on stock markets to be safe but they often explain things without referring to the market they are talking about (especially in Youtube videos) and I find out the author mainly trades Forex after I watch their videos. 

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