Equatorial Countercurrent

1) No single TA pattern, method, or algorithm (or combination of such) has ever been demonstrated, using rigorous statistical methodology stripped of biases, to work any better than a random signal in elucidating market or security direction. And this includes the famous head-and-shoulders pattern. In other words, subjective technical analysis is largely an optical illusion, akin to alchemy or palm-reading.

2) All of the well-known TA patterns show up consistently in charts made by a random chart generator.

3) In a frequently repeated experiment with consistent results, experienced chartists and TA practitioners are routinely unable to distinguish the charts of real securities from those made by a random chart generator.

Happy trading!

Matt