Stock Charting Profits
Technical analysis is one technique used for analyzing the performance of markets and stock picks, (and other areas of business), by analyzing key trends and data. Most often, the variants analyzed are pricing, volume and time scale, though many other factors can be taken into the equation. A lot of the studies are completed through charts, and have since given rise to analysts being dubbed "chartists".
However, though it sounds a strong process, with clear ideals and visions; many are not impressed. They say it lacks structure and reasoning. To counter this, those supporting the technique argue that its links with behavioral finance function and proven results over the years are its justification.
Another objection to the technique rests upon how, if it is so sound a function, that automatic trading strategies should be a matter of course in its development; that this is yet to be the case is held up as proof is doesn't work.
Other arguments against it are heard too; most loudly of all tends to be the fact that evidence of the technique being the reason for a successful strategy are never given; though this is countered by the response that evidence is given, just not understood. A weak argument for many.
However, the basis that it does work is founded on proven facts that history, and trends and past performance do indicate the future. It is only sensible therefore to expect it to work. That experience in the field is applied to these studies too, suggests it is sound.
Whatever side of the discussion that people sit however, one things is generally always agreed upon, (except by the hard line minorities of both camps). And that is that all techniques, including that of technical analysis, should be used to complement each other and to back-up the others results. And this is only prudent after all which, in light of the economic issues of recent years, is only wise. - 23226
However, though it sounds a strong process, with clear ideals and visions; many are not impressed. They say it lacks structure and reasoning. To counter this, those supporting the technique argue that its links with behavioral finance function and proven results over the years are its justification.
Another objection to the technique rests upon how, if it is so sound a function, that automatic trading strategies should be a matter of course in its development; that this is yet to be the case is held up as proof is doesn't work.
Other arguments against it are heard too; most loudly of all tends to be the fact that evidence of the technique being the reason for a successful strategy are never given; though this is countered by the response that evidence is given, just not understood. A weak argument for many.
However, the basis that it does work is founded on proven facts that history, and trends and past performance do indicate the future. It is only sensible therefore to expect it to work. That experience in the field is applied to these studies too, suggests it is sound.
Whatever side of the discussion that people sit however, one things is generally always agreed upon, (except by the hard line minorities of both camps). And that is that all techniques, including that of technical analysis, should be used to complement each other and to back-up the others results. And this is only prudent after all which, in light of the economic issues of recent years, is only wise. - 23226
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posted by X - Men @ 2:11 AM
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