CHAPTER 2WHAT IS TECHNICALANALYSIS, AND WHY USE IT?

John Shultz of Brean Murray was a founding member of the Market Technicians Association (MTA), a professional organization I also helped found in 1972 and that I’ll discuss further in Chapter 24. One of the founding documents was the “MTA Principles and Policy”; John wrote it in 1972 and was reverently referred to as the Thomas Jefferson of the MTA ever after. The “Principles and Policy” document isn’t on the MTA’s website, but I happen to think that it’s the best thing that’s ever been written explaining exactly what technical analysis is and why it is such a necessary part of the investment process. It’s a wonderful starting point for us.

(And let me add a personal note: John received the ...

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