Saturday, January 30, 2016

Does Technical Analysis evolve and improve?

The brief answer is: Yes.

The question is: Since technical analysis is based only on price movements, there must be limitations on the knowledge growth possible in TA.
After all, how much analysis is possible on prices!
Therefore, all the knowledge that could be developed has probably been developed. No further research is needed.

My answer to this question is : Like most other arts and sciences, Technical Analysis, evolves, discovers, innovates and improves.

TA started with Candlestick analysis in Japan, several hundred years ago. It was rediscovered in America in the late 1800's, then bloomed into a variety of innovative thoughts: classical charts, Wyckoff, Elliot waves, Gann, Hurst, point and figure, and more. In recent years, developments include cycle analysis, data mining, system trading, portfolio testing, high frequency trading, automatic pattern recognition, inter market relationships, trading in ETF's, futures and options. This list could easily continue.

I would suggest to TA traders and analysts: understand that learning is a continuous process. Have the hunger and thirst to learn more and more.


3 comments:

Pattabhiramreddy Sykam said...

sir,
I want to join as a assistant under you, cloud you pls tell me, is it possible?

Shazia M said...

Hello Sir
I just wanted to compliment you on your most of the time correct and honest technical evaluations of the market. I think this is largely because of the immense faith you have in the technical analysis that you do. Also kudos to you for sticking to your convictions (which is of course the technicals you follow) even on days.. when the markets try to defy (read fool) you and try to negate whatever you are saying on TV. Eventually your trades win because of your strictly follow the technicals method.

Shazia M said...

I was watching CNBC TV 18 and heard about your disbelief in V shape rallies..What about U shape recoveries? And which shape is more convincing??