Technical analysis is the studying of price and volume changes over time to forecast where stocks might trade in the future. The primary goal of a technical indicator is to identify areas of support/resistance imbalances in the market which could signal either a price continuation or reversal. If a trader can discover where buyers will be heavily present with demand or where sellers will be heavily present with supply, then he can take positions in the market accordingly. However, the backtesting research we’ve performed here at Option Alpha concludes that 95% of technical indicators have neither predictability nor profitability as a trading indicator. Check out our case studies and research below which helps you discover which indicators, and specific settings, work best.
Guide to Technical Analysis
- SIGNALS: The 20-Year Technical Analysis Backtesting Report Covering 17.34 Million Trades
- Technical Analysis Indicators & SIGNALS [Video Lesson]
- [PROOF] The Financial Media’s #1 Recommend Technical Analysis Indicator Fails Miserably
- How Changing Just 1 Setting Increased This Indicator’s Win Rate From 31% to 68%
- Shocking Results: Only 5% of Technical Analysis Indicators Actually Beat The SPY Benchmark Over 20 Years