Hi guys, hi from Andrea Unger! Today, I’d like to talk about technical analysis. Does it really work?
The question about whether technical analysis works or not was probably born from a misconception. Those who read my resumé can see that I am a member of the scientific community of SIAT, the Italian Technical Analysis Society.
I believe in technical analysis and I don’t like listening to those who say it doesn’t work. The problem is that, normally, they tend to identify technical analysts as pure chartists, i.e. people who draw lines on charts. This is obviously fine, but it’s just one part of the picture.
Today, this kind of analysis is the result of a long evolution. It gathers many aspects, including the quantitative analysis of markets, which plays a remarkable role. Quantitative analysis means all the analyses a trader carries out to build his trading systems in order to beat the markets, as we say today.
So, actually, there is much more than you can imagine. As a matter of fact, I can say that this analysis works. Believe me, there is so much to look at. You just need to identify what you need, look for it, and you’ll certainly find many pieces of useful information. However, how properly you use these pieces of information depends on how much skilled you are.
The chartists – i.e. the old version of technical analysts – are profitable if they are good at using the tools at their disposal in a discretionary way.
However, in technical analysis there is much more than that. You can really find something that’s useful for you, so take a look at it. You’ll discover a whole new world!
Stay tuned!
Ciao from Andrea Unger!
