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Chapter 8. The advanced futures trading ... > Does technical analysis really work?

Does technical analysis really work?

I have more than 25 years of experience that proves technical analysis really does work. Solid technical analysis is perhaps the only tool that can give the individual trader a decent chance against the professionals. You might not have the research capabilities of the commercials or the execution advantages of the floor traders. However, with technical analysis on your side, what you do have is the luxury of moving faster than the big commercial operators, because your trading size will not affect price too significantly. You have one advantage over the “locals”—a better perspective. You're not subject to the false trend movements, what I call the “noise” that takes place on the floor every minute of every day, plus you're not stuck trading just one market (which might or might not be moving). You can sit back, relax, and look at your “maps” in the comfort of your home or office—you can analyze your charts.

Pure technicians believe that the only important factor necessary to the markets is price action. They do not look at crop size, export data, money supply, or employment numbers. They don't care if it's raining in Brazil or if the head of the European Central Bank just made a speech saying he's in favor of raising interest rates. Technicians only care about price action.


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