13-09-2017, 03:18 PM
In finance technical analysis is a methodology of analysis to predict the direction of prices through the study of past market data, mainly price and volume. Behavioural economics and quantitative analysis use many of the same tools of technical analysis, which, being an aspect of active management, is at odds with much of modern portfolio theory. The effectiveness of technical and fundamental analysis is discussed by the efficient market hypothesis which states that stock market prices are essentially unpredictable.
The principles of technical analysis are derived from hundreds of years of financial market data. Some aspects of technical analysis began to appear in the accounts of Amsterdam-based entrepreneur Joseph de la Vega of Dutch financial markets in the seventeenth century. In Asia, technical analysis is said to be a method developed by Homma Munehisa during the 18th century who evolved in using candleholder techniques, and is now a technical analysis charting tool. In the 1920s and 1930s Richard W. Schabacker published several books that continued the work of Charles Dow and William Peter Hamilton in his books Market Theory of Values and Practice and Technical Market Analysis. In 1948 Robert D. Edwards and John Magee published the Technical Analysis of Stock Market Trends that is widely considered one of the most important works of the discipline. It deals exclusively with the analysis of trends and graphic patterns and remains in use until the present. Early technical analysis was almost exclusively graphical analysis, because the processing power of computers was not available for the modern degree of statistical analysis. Charles Dow supposedly originated a form of analysis of graphs of points and figures.
Dow's theory is based on the writings collected by Dow Jones co-founder and publisher Charles Dow, and inspired the use and development of modern technical analysis in the late 19th century. Other pioneers in analytical techniques include Ralph Nelson Elliott, William Delbert Gann, and Richard Wyckoff who developed their respective techniques in the early twentieth century. In the last few decades, more technical tools and theories have been developed and improved, with an increasing emphasis on computer assisted techniques using specially designed computer software.
The principles of technical analysis are derived from hundreds of years of financial market data. Some aspects of technical analysis began to appear in the accounts of Amsterdam-based entrepreneur Joseph de la Vega of Dutch financial markets in the seventeenth century. In Asia, technical analysis is said to be a method developed by Homma Munehisa during the 18th century who evolved in using candleholder techniques, and is now a technical analysis charting tool. In the 1920s and 1930s Richard W. Schabacker published several books that continued the work of Charles Dow and William Peter Hamilton in his books Market Theory of Values and Practice and Technical Market Analysis. In 1948 Robert D. Edwards and John Magee published the Technical Analysis of Stock Market Trends that is widely considered one of the most important works of the discipline. It deals exclusively with the analysis of trends and graphic patterns and remains in use until the present. Early technical analysis was almost exclusively graphical analysis, because the processing power of computers was not available for the modern degree of statistical analysis. Charles Dow supposedly originated a form of analysis of graphs of points and figures.
Dow's theory is based on the writings collected by Dow Jones co-founder and publisher Charles Dow, and inspired the use and development of modern technical analysis in the late 19th century. Other pioneers in analytical techniques include Ralph Nelson Elliott, William Delbert Gann, and Richard Wyckoff who developed their respective techniques in the early twentieth century. In the last few decades, more technical tools and theories have been developed and improved, with an increasing emphasis on computer assisted techniques using specially designed computer software.