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This just shows that so-called ‘technical’ analysis with no context is about as useful as trading based on horoscopes. Add in some information like ‘a new pand

• czbond 7y ago
  Technical analysis has validity - it is just patterns and data. It isn't perfect, because outcomes are still variable, and also consist of independent human decisions. A pandemic is an edge case... However, markets react much more quickly than in the past (algorithms, global data, instant analysis of that data) - that technical analysis short term timelines have compressed. If you want statistical breakdowns of each pattern, their movements, and outcomes - this book is a great reference. https://www.amazon.com/Encyclopedia-Chart-Patterns-Thomas-Bulkowski/dp/0471668265 https://www.amazon.com/Encyclopedia-Chart-Patterns-Thomas-Bu...
  • pembrook 7y ago
    That book is essentially a collection of newspaper horoscopes. Trading off data and patterns is a valid strategy, but the book you referenced doesn’t show you how to do that. (drawing pictures over charts and making subjective conclusions based on what you drew is not a data driven strategy). Read the recent book on Rentech (the man who solved the market is the title I believe) to better understand how difficult it is to actually beat the market using data. Once you read about a firm who has consistently beat the market—-and how tiny their edge actually is—-you’ll put the notion that you have the resources to do so on your own to bed.
    • quickthrower2 7y ago
      I wonder how the firm did this year?