Tag Archives: technical analysis

Is the Bulk of Technical Analysis “Thinking in Words”?

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.

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Eight Signs To Help You Identify Technical Analysis Trolls

Modern technology offers the opportunity to trolls to pose as technical analysts. How do you recognize a technical analysis troll? Eight signs provide clues.

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Dreams Of Profits From Machine Learning: The Next Big Market Trap

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

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Fibonacci Voodoo On Gold

Gold prices retraced about 38% of their previous uptrend that started in December of last year and peaked during last July. One could say that gold prices found support at the 38.2% Fibonacci retracement level but that is more like … Continue reading

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Is Technical Analysis Broken?

When major financial media sites make up patterns because they can find none to present their case of a bull market, then there is a problem. Fed policies and the financialization of all assets have had a negative effect on … Continue reading

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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 renders most claims … 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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