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RE: Why You Can Trust Technical Analysis
I was turned onto technical analysis last October/November. In all my curriculum in finance so far, it occupied only a couple pages and is poo-poo'ed by faculty--save for one, who no longer teaches courses on it. I had noticed though that every major firm and investing bank seems to have someone putting out an article or a soundbite on technicals, so I asked about it and started reading up on it, and I'm glad I did.
Lot's to learn, and the various indicators always seem to be coming into vogue and out again. Very intriguing field.
Thanks for your comment...I didn't realize it was mentioned at all by official educational curriculum, although the discipline not getting respect doesn't surprise me. What they don't realize is that using fundamentals is also a form of forecasting...and I would argue an inferior approach. For example, certain "sacrosanct" fundamental tools, like P/E ratios, are overused and don't really provide great information as it relates to future market probabilities.
It looks mostly relegated to "behavioral" finance, which in my opinion isn't really technical, it's another field.
The faculty that showed it to me didn't recommend actual textbooks in the traditional sense, but the main publications on the topic, like Bollinger, DuPlessis, Magee and Edwards, Linton, Dalhquist, and several others and told me to read their books rather than take tests.