The Science of Technical Analysis

Discussion in 'Technical Analysis' started by TraderSystem, Oct 6, 2007.

  1. Everyone says that Technical analysis not valid, silly tool. In this thread let us discuss a scientific view of the subject.

    Please, no off-point posts. Please just stick to facts of different Technical Methods. Please, just simply discuss about Technical methods.
  2. nkhoi

    nkhoi Moderator

    let's define what it means by 'scientific view'..
  3. it tough to have a scientific view on anything that isn't even defined. migt as well speak of the science of modern art you may have better results.
  4. FAST.AM


    The science behind is strictly psychology101 .! Think about what it really boils down to at the end of the day.
  5. By Scientific look, I mean study the logic behind each indicator and the math. Plus, we will test both "common rules" and advance concepts 100% mechanically.

    We will also evaluate the rules in the light of the logic behind each indicator and look at how pattern based trading relates to Technical analysis and indicators.
  6. This has already been done. Numerous exhaustive, multiyear studies find little advantage to using TA indicators or patterns. The response from those who still believe in classic TA is "that is wrong" without providing any significant proof to the contrary.

    In other words, shoot the kid who says "but the emporer is naked!"
  7. indeed, we may name the TA as statistika. And this will no be a mistake. and this and there is science.
  8. Westward


    Technical Analysis is a self-fulfilling prophecy. If you get enough people trading off of the same indicator, there lies the truth.

    With out it, the market would all be a little closer to anarchy.
  9. I went through the ET and the site ( to see the most common talked about sites. Wow!! What a list! I have written it in alphabetical order.

    Can anyone say if I have missed out any software or have made a mistake?

    1. AIQ Trading Expert
    2. Amibroker
    3. BackTrader module
    4. interactivebrokers
    5. Investor RT
    6. investors
    7. mbtrading
    8. MetaStock
    9. morningstar
    10. Multicharts
    11. NinjaTrader
    12. OpenQuant
    13. OV5's BackTrader
    14. portfolio123
    15. Prophet
    16. RightEdge
    17. Seer Trading
    18. shortsqueeze
    19. StockCharts
    20. Stockfetcher
    21. stockworm
    22. TradersStudio
    23. TradeStation
    24. Trading Blox
    25. Trading Receipes
    26. ValueForum
    27. Vector Vest
    28. Wealth-Lab
    #10     Dec 7, 2007