Dorsey Wright was acquired by the NASDAQ for over $200m in 2015. [1] They made a business of selling asset allocation and sector rotation model portfolios, main

Dorsey Wright was acquired by the NASDAQ for over $200m in 2015. [1] They made a business of selling asset allocation and sector rotation model portfolios, mainly using RSI (Relative Strength Index). They are probably a bigger business now than when they were bought. So the question of whether technical analysis makes money: Yes, for the right people it does. As a long time trader and markets practitioner, I can also tell you that YMMV with technical indicators. Because many people use them, they are self-fulfilling in a way. The signal exists because people think there is a signal. Another way to think about it, is technical indicators can be generalized to other well known price-based or volume-based indicators or factors such as momentum, reversion, etc... Understanding how volume interplays with price is also quite important. Big price moves with little volume may not have support. Technical indicators aren't bad. For "visual thinkers" it may be a great way to segway into a more "closed-form" solution or explanation of how a particular market works. Also, to the folks who are poo-poohing the "simplistic" blog post: yes, the analogy to astrology is a bit contrived. But the point on using SMA for better risk-adjusted returns is excellent. This would be a great foundation for building a higher-Sharpe S&P-like replication strategy. [1] https://ir.nasdaq.com/news-releases/news-release-details/nasdaq-acquire-dorsey-wright-associates https://ir.nasdaq.com/news-releases/news-release-details/nas...