The Value Added
of
Technical Analysis

Technical Analysis is the study of the behaviour of the universe of investors having an interest in any 'tradeable' - be that a stock, bond, currency, or index. The ultimate determinate of this behaviour is rooted in the fundamental conditions pertaining to the tradeable. To analyse such behaviour, the Technical Analyst or 'Technician' can use many tools including moving averages, various kinds of charting methods, rate of change, or cyclical observations of price movement to name a few. In addition, the technician may analyze various measures of investor sentiment such as bullish consensus, insider activity, put/call ratios and many others.

I began my study of Technical Analysis shortly after entering the investment business in 1970. At that time there were no courses and very few texts on the subject. One was left to explore and experiment by developing indicators and observations alone or by trading discoveries with others.

Canadian Society of Technical Analysts In 1984 I became a founding member of the Canadian Society of Technical Analysts as a member society in the newly formed International Federation of Technical Analysts. I have occupied several roles in the development of the Canadian society including lecturing at its school, contributing articles of my own original work as well as reviewing that of others; and, ultimately becoming President of the CSTA in 1996 for a two year tenure. You may wish to visit our Society's WEB Site at csta.org

Two Eyes I have found technical analysis to be a very effective adjunct to the fundamental appraisal of conditions and it is certainly vital in assisting with the 'timing' aspect of investment decisions. Using the two methodologies together is having both eyes open. Indeed, in this respect,my motto is: 

When you know why, now when.
and
When you know when, know why.