2. The History of Technical Analysis

“The market is people in action, acting like people.”

—Bernard Baruch

In 1958, the candy company Just Born Candies introduced the marshmallow chicken, reigniting the classic debate over which came first—the marshmallow chicken or the chocolate egg? Which developed first—technical or fundamental analysis?

Most investors assume fundamental analysis preceded technical analysis. This conclusion appears logical. It takes two opposite opinions to come together to produce a price, and a series of prices creates the chart.

The First Recorded Investment—A Fill or Be Killed Order

One might logically expect fundamental analysis to predate technical analysis. But this logic presupposes that prices used to create the chart ...

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