Tag Archives: technical analysis
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.
Yesterday the S&P 500 made an intraday low a little more than 0.8% below the previous day’s close and that got some bears in social media excited. However, it is the relative frequency of these events that counts, not a … 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Many traders overestimate their technical analysis skills and this mainly involves those using old and outdated methods.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.
Until now I thought that the main problem of technical analysis is bias of all kinds. A tweet from N. N. Taleb yesterday got me thinking. Maybe there is a more serious problem than bias: thinking in words.
Modern technology offers the opportunity to trolls to pose as technical analysts. How do you recognize a technical analysis troll? Eight signs provide clues.
Value and institutional investors, market makers, specialists and other savvy professionals profited handsomely in the last three decades from the losses of traders using naive technical analysis, such as chart patterns and simple indicators. The next huge trap is machine … Continue reading