Tag Archives: technical analysis

The last Chapter of Classical Technical Analysis

When classical technical analysis was developed, people did not have access to data to investigate the validity of its claims. Some made a name by developing simple indicators without any proof that they actually worked. It’s time that the book … Continue reading

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How to Distinguish Between a Modern Technical Analyst and a Visual Chartist

Visual chartists often believe they are doing technical analysis but in most cases what they do has little relation to it. It is not hard to distinguish between a modern technical analyst and a visual chartist. Four signs are offered … Continue reading

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Short Term Correction or Changing Market Conditions?

The short-term market direction at this point in time will depend on the state of the underline fundamental conditions that fueled the rally.  The main forces behind this stock rally were persistent investor buying and the FED resolve to avert deflationary pressures. The … Continue reading

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Gold False Breakout to the Downside

Spot gold has gained more than $45 after testing longer-term resistance near $1,540 last week. Some technical analysts have recently focused on some, in my view, random pattern formations on the gold chart and have pointed to an imminent collapse. Recent … Continue reading

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A Test of the May Low in Silver is Highly Probable

If there is a pick-up in economic activity and indications about a possible uptick in rates, precious metals will fall. If there is further decline and talk about QE3, precious metals will rally. Technical analysis can only identify price levels with some … Continue reading

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Chart Analysis is Not a Trading Method

Chart analysis can provide a context for experienced discretionary traders for coming up with subjective probabilities, which are then updated by proven, high expectation methods. Chart analysis alone is a negative expectation trading method because charts nowadays are available to everyone with access to the Internet. … Continue reading

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The Four TA Patterns on the GLD Chart that Failed

This post could have the title “Beware of Greeks Baring Gifts No 2″ as a sequel to my original post on October 1, 2011 where I warned about the pending failure of the obvious pennant formation in GLD, a chart pattern … Continue reading

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