Why You Can Trust Technical Analysis


Source: Why You Can Trust Technical Analysis | Breaking News — Crush The Street

By Joshua Enomoto

For multiple generations, investors have relied upon the discipline of technical analysis to assess the risk/reward balance of potential procurements. Technical analysis has a critical advantage over fundamental analysis in that the price charts reflect near-real time sentiment in the markets. In contrast, fundamental analysis primarily depends on corporate financial statements — and those only come out on a quarterly basis.

However, technical analysis is not without its critics. The most common attack against the methodology is that its prognostications are based on unquantifiable assertions. In laymen terms, it’s nonsense; nothing more than mumbo-jumbo dressed up in advanced lexicon. Underneath the hood, critics claim, lay nothing more than tealeaf readings or other woefully unproven disciplines.

Criticisms of the Technical Market Theory

This disparagement isn’t limited to internet trolls, or fund managers that rely…

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