Technical Stock Market Analysis
There are many techniques in forecasting trends these days for stock trading; one that has been around for a number of years is technical analysis. This works by analyzing certain trends; including time period and volume, though mainly focuses on pricing in reference to these. A very complex process in many respects, it tends to center around charts, graphs and dot references.
However, though it sounds a strong process, with clear ideals and visions; many are not impressed. They say it lacks structure and reasoning. To counter this, those supporting the technique argue that its links with behavioral finance function and proven results over the years are its justification.
Another objection to the technique rests upon how, if it is so sound a function, that automatic trading strategies should be a matter of course in its development; that this is yet to be the case is held up as proof is doesn't work.
However, other arguments exist of course; most commonly how to prove that technical analysis was the reason for success. Chartists counter this by providing back testing evidence, tough this is often dismissed as nothing more than conjuncture.
The basic argument for those supporting the technique, is that it just makes sense to study past performance, pricing trends, and any areas where upon a variant and a constant can be linked. Trends in the markets do occur regularly; this is just an accepted fact; understanding where these trends are going to recur is merely applying a technique.
Advocates of the system, and objectors to it, do seem to come together in some sort of agreement however. Whilst both have very differing views, both state that technical analysis should be used not as standalone technique, but more just one of several weapons to understand fluctuations in the market and apply strategy effectively. - 23199
However, though it sounds a strong process, with clear ideals and visions; many are not impressed. They say it lacks structure and reasoning. To counter this, those supporting the technique argue that its links with behavioral finance function and proven results over the years are its justification.
Another objection to the technique rests upon how, if it is so sound a function, that automatic trading strategies should be a matter of course in its development; that this is yet to be the case is held up as proof is doesn't work.
However, other arguments exist of course; most commonly how to prove that technical analysis was the reason for success. Chartists counter this by providing back testing evidence, tough this is often dismissed as nothing more than conjuncture.
The basic argument for those supporting the technique, is that it just makes sense to study past performance, pricing trends, and any areas where upon a variant and a constant can be linked. Trends in the markets do occur regularly; this is just an accepted fact; understanding where these trends are going to recur is merely applying a technique.
Advocates of the system, and objectors to it, do seem to come together in some sort of agreement however. Whilst both have very differing views, both state that technical analysis should be used not as standalone technique, but more just one of several weapons to understand fluctuations in the market and apply strategy effectively. - 23199
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posted by X - Men @ 6:31 AM
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