Technical Analysis: It’s Not What You Think
A version of this article appeared on our website May 9, 2014. By Brian Nelson, CFA I’ve spent most of the morning trying to figure out who was first to say ‘technical analysis is like reading tea leaves.’ After being unsuccessful, I’ve given up looking and moved on to more important items. However, whoever first uttered those words — and those that repeat it mindlessly — may have done (and are doing) a great disservice to the novice investor. Let me explain why technical analysis in some form should be a part of your stock-selection arsenal. Even if you do not buy into the traditional “pattern” or “breakout” nomenclature that many associate with technical analysis, a stock chart is extremely valuable in a number of different ways: … Read more