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It could be said that trading in general is a waste of time (and money),
most of the time, for most people. You want simple? Only buy when a security
is going to go up and only sell when it's going to go down. Trading is a
war, if you want to emerge a victor you do what is necessary to win even if
it means developing Colossus.
Brent
> Hi RT'ers,
>
> Read an interesting article here in England in the Investors
Chroniclebased
> on a paper :"Methodical madness: technical analysis and the irrationality
of
> exchange rate forecasts"(Economic Journal - Oct 1999)
>
> Have'nt read the original article but it studied the use of the popular
head
> and shoulders pattern as a predictor of currency movements( 6 leading
> cuurencies against the US $ - 1973 - 1994) and found it to be useless.They
> said that where pattern did give good results it may have been because of
> self fulfilling prophecy as so many traders use the technique.
>
> They said that profits could be bettered by using much simpler trading
rules
> - MA crossover or when current price is above recent levels are two cited.
>
> Whilst the article studied the H & S pattern specifically the IC intimated
> that a large part of tech analysis is a waste of time.
>
> Any comments?
>
>
> Bob Jones
>
>
>
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