Literature Review: Technical Analysis - Modern Perspectives

45 Pages Posted: 31 May 2017  

Gordon Scott

Market Technicians Association

Michael Carr

Banyan Hill Publishing

Mark Cremonie

SectorAnalytics, Inc

Date Written: November 2016

Abstract

Supply and demand are cornerstones of economics and the interaction of these forces is believed to explain price changes in all freely traded markets. Scarcity tends to result in increased prices and abundance generally leads to lower prices. In financial markets, technical analysis provides a framework for informing investment management decisions by applying a supply and demand methodology to market prices. Technical analysts employ a disciplined, systematic approach that seeks to minimize the impact of behavioral biases and emotions that could adversely affect investment performance. Analysts employ ratio analysis, comparative analysis and other techniques that are similar to the tools developed to analyze financial statements.

Suggested Citation

Scott, Gordon and Carr, Michael and Cremonie, Mark, Literature Review: Technical Analysis - Modern Perspectives (November 2016). CFA Institute Research Foundation 2016L - 1. Available at SSRN: https://ssrn.com/abstract=2978185

Gordon Scott (Contact Author)

Market Technicians Association

61 Broadway, Suite 514
New York, NY 10006
United States

Michael Carr

Banyan Hill Publishing

P.O. Box 8378
Delray Beach, FL 33482
United States

Mark Cremonie

SectorAnalytics, Inc

38 Pinehurst Dr.
Laguna Vista, TX 78578

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