Last week I began our blog series with a look at the history, theory and philosophy of technical analysis. This week we move on to look at 20 rules that you should build into your technical analysis. It is by no means an exhaustive list; there are many more technical analysis rules than this and there will also be rules that you create yourself. However, those presented here are a good foundation that you can apply to your analysis and build on. Some rules may appear, at this possibly early stage in your interaction with the subject, as both peculiar and confusing. Stick with it though, because during the remainder of this blog series, the use of these rules will become a lot more apparent and understandable. [Read more…]
Welcome to a new Technical Analysis blog series. This series will comprise 25 introductory articles covering all aspects of technical analysis, from the very basics through to some more advanced theory. Hopefully, these articles will whet your appetite for the subject and inspire you to take up technical analysis (if you haven’t already) and use it in your trading and investing. My aim is to enhance your existing knowledge and give you an insight into how technical analysis can be used as an effective trading tool, both to make and save you money and give you new roads to follow. This is a vast, often misunderstood subject, so the aim of this blog series is to make it more accessible by breaking down a few of those boundaries.
In this first article we explore the roots of technical analysis. It is vitally important for you to understand where technical analysis has come from and the thinking behind it, if you’re ever going to successfully use it in practice. [Read more…]