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".
For many, technical analysis lacks any real theory that underpins it, and is subsequently without credence. However, others argue that its results are justification enough, and point to its correlation to behavioral finance.
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.
A lack of evidence that technical analysis was the sole reason for successful strategy trading has also been held up for discussion in the camp against its merits. However, chartists argue that back testing evidence has been delivered; simply that it is not understood by the detractors.
In essence though, the arguments for the technique are sound. Anything in life can be analyzed, and lessons learned; history to name but one of course! However, the issue seems to be in the selecting of trends to study, and in the application of strategies taken from them; but market trends do appear; it is just a question of spotting them at the right time.
However, whilst different opinions are rife across many bodies; one thing does seem to bring both group together; that technical analysis should not necessarily be relied upon solely. And this is only sensible of course. After all, there are not many of us out there that go out foraging, only to place all of our eggs in just the one basket. - 23229
For many, technical analysis lacks any real theory that underpins it, and is subsequently without credence. However, others argue that its results are justification enough, and point to its correlation to behavioral finance.
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.
A lack of evidence that technical analysis was the sole reason for successful strategy trading has also been held up for discussion in the camp against its merits. However, chartists argue that back testing evidence has been delivered; simply that it is not understood by the detractors.
In essence though, the arguments for the technique are sound. Anything in life can be analyzed, and lessons learned; history to name but one of course! However, the issue seems to be in the selecting of trends to study, and in the application of strategies taken from them; but market trends do appear; it is just a question of spotting them at the right time.
However, whilst different opinions are rife across many bodies; one thing does seem to bring both group together; that technical analysis should not necessarily be relied upon solely. And this is only sensible of course. After all, there are not many of us out there that go out foraging, only to place all of our eggs in just the one basket. - 23229

