Tag Archives: technical analysis

Financial Media Intimidation Effects

Journalists do their job and investors and traders should do their. Market participants should not feel intimidated by post hoc market analysis because that may lead to spasmodic reactions and losses. Doing own homework is of paramount importance.

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Misuse And Abuse Of The Notion Of Probability

Probability is an often abused and misused notion, especially in technical analysis. Although traders make constantly claims of high probability setups or macro bets, they are only justified when probability is defined as a measure of belief. This is a problem … Continue reading

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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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