Continued from Part 1
So what is the advantage in technical analysis?
As it is this human element that moves price, the nature of the market can to a certain extent be predicted, but only over the long term. Let me illustrate this point with a simple example. Call 50 people and we could comfortably predict that a good portion of them, say 50% to 60%, would answer with the classic “hello”. So natural is this response that most would be willing to bet a wager on this. But here is the catch; it is not guaranteed what each individual will say, rather similar to flipping a coin and guessing heads or tails. However, over a large number of guesses we will be correct around 50% of the time. Continue reading
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