Some people will dismiss technical analysis and charting as just squiggly lines on a chart – and I for one am not the biggest fan of the chart pattern approach to trading or investing. That aside, there are often sound changes or shifts in investor sentiment that underpin the various patterns that are a major…
One of the appeals – and drawbacks – to technical analysis for some are the many, many ways of analysing historical data on a chart. Before home computers and sophisticated investing software, many charts were either in paper format or on dedicated terminals, primarily used by City institutions. Now of course, you are only ever…
In my opinion, investors/traders don’t spend enough time on putting together a strategy that helps them decide when to get out of a profitable position. All of the effort gets channeled into finding a perfect system for where to get in – which of course doesn’t exist! But where you finally get out is what…
One of the many common criticisms that could be aimed at a charting approach to the market (and there are quite a few): If it works, why aren’t all chartists fabulously rich? It’s a fair comment – but also one that could be levied at the fundamentalists’ approach as well. The problem with most forms…
This month we will take a look at a sub-division of the world of charting and technical analysis – the Japanese candlestick chart and a couple of associated patterns. This form of representing price data has become very popular in recent years. It is an approach that is thought to date back to the 18th…
The last twenty years have seen significant growth in the use of technical analysis and charting. The growth of the internet and much more trading by normal retail investors has played a big part in this. As its use has increased, the software we use to try to analyse markets has got ever more sophisticated.…
Too many people seem to have a blind faith approach when investing, and if a share continues to slide they hang on in the hope that one day it will rise. This can tie up money that could be better used for other opportunities and, for me, a major benefit of a trend/charting approach is…
