3. Technical Analysis
This chapter covers the technical analysis techniques that are used later in determining the success or failure of market timing systems based on economic data. They do not include the standard chart pattern analysis, but instead they include the analysis of trends using moving averages and other methods.
As any chart of market prices will show you, prices have a predilection toward traveling in trends. The trend, of course, can be upward or downward at various slopes, or sideways. Most investors in trading markets make money following the trend of an investment price. The fact that prices trend makes it possible to make money. If prices were purely random in their movement, no one would profit. But people do profit, ...