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5. Technical Analysis > Computers and Technical Analysis

Computers and Technical Analysis

The computational demands of technical analysis restricted its adoption and growth until the mid-1960s. Dow Theory and rudimentary charting techniques began in the 1890s, but the availability of reasonably priced calculators and computers, and easy access to price and volume data propelled technical analysis into prominence just a few decades ago.

The ability to calculate and plot basic indicators, such as moving averages, fueled interest in technical analysis. Then, personal computers and standalone software packages that digested data culled from the financial pages of newspapers made it available to a broad audience. The now-ubiquitous Internet and high-speed connections have made the dissemination of online financial information, charting, screening, and new technical analysis techniques speedy, efficient, and practical.


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