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To: Seeker of Truth who wrote (56615)	11/29/2004 3:49:37 AM
From: elmatador	Respond to of 74559

To know the future we still have to look at the company itself, its competitors, the local situation, world situation etc. why TA is useless? My view is that for you to able to <<have to look at the company itself, its competitors, the local situation, world situation etc.>> you need to: 1) be minimum 35 years old. 2) Have been involved in the industry you're analysing 3) Have the right contacts within the industry you're analysing 4) have worked and lived in at least 3 countries in different continents 5) Know a couple languages besides English. Universities don't supply this animal. By the supply technical analysts and they carve up a market for their skills.

To: Seeker of Truth who wrote (56615)	11/29/2004 5:02:47 AM
From: energyplay	Read Replies (1) \| Respond to of 74559

I was extremely skeptical about TA for a long time.... *** A better test - Given 100 randomly selected charts, a TA analyst can select 15 of them, and get statistically significant results. For the other 85 charts, TA can be would not add much value. This can be tried a large number of times, and produce positve results. Some fairly rigrous examples of this were done at MIT about 2 years ago - soem profs were looking to do an easy paper showing thast TA did not work. ** This track record is not as good as a 30 day weather prediction, or even a 60 day weather prediction. But it does add enough of an edge that hedge funds and major I banks pay the salaries of TA people, and not just to advise clients. **** Behavourial finance is providing scientific basis for certain TA patterns.