Category Archives: Technical Analysis
Most technical analysis indicators are used in forecasting price action but provide little information about the dynamics that drive it. The indicator in the chart below is unique because it offers a different perspective about stock market action.
This new meme that emerged last week confirms my view that many try to rationalize price action in the context of their expectations and that most of technical analysis is thinking in words.
There is a lot of misinformation in the financial blogosphere but also in books and the targets are those who are not willing to check the information provided. I always check as much as I can given practical limitation.
The holiday-shortened week marked a significant change in asset performance with gold outperforming technology on a year-to-date basis. This impacts diversified portfolios.
Many articles in last few days attempt to link a decline in US Dollar to a correction in bonds. Technical analysis is used to justify bias. These markets are known for often violating technical analysis since their direction depends on political … Continue reading
Many traders overestimate their technical analysis skills and this mainly involves those using old and outdated methods. However, in some cases technical analysis is used as a cover to promote wishful thinking.