Hi, Andrea Unger here. And, technical analysis. Does technical analysis work?
Well, if it works or not is a question that was born, probably, from a misconception of technical analysis. Who reads my curriculum sees that I am a member of the scientific community of SIAT, the Italian Technical Analysis Society. So, obviously, I do believe in technical analysis, and I don’t like to listen to those who say technical analysis doesn’t work. The problem is that normally, they identify technical analysts as chartists—pure chartists, people who draw lines of the chart, which is fine, but this is only one part of the world of technical analysis.
Today, technical analysis had a great evolution and it has also a big portion of quantitative analysis of markets. Quantitative analysis means all the analysis I personally carry out to build trading systems, trading systems to build the markets as we say today. So actually, there is much, much more than you could imagine in technical analysis. And as a matter of fact, I can say that, yes, technical analysis does work; technical analysis does work. Believe me, there is so much to look at it, identity what you need and look for it. You will find really, really useful information. But obviously, it depends on how much skilled you are to use properly the information.
The Chartists, which is the old version of technical analysts, is profitable if he is a good discretionary user of what the tools are at his disposal. But at the end of the day, there is so much more than you really can find something that is useful for you. Look for technical analysis; look into it. You will learn a new world.
Stay tuned. Ciao.