Technical Analysis: Forecasting or Fortune‐Telling?

Abstract

This paper outlines the present state of technical analysis and describes the various mechanisms associated with current practices. In particular, the relative strength analysis approach is identified as a useful tool for investment appraisal. Empirical research on specific technical theories is called for, especially into the relative price behaviour patterns of industrial stocks. Overall, there is seen to be some merit in a proper application of technical theories allied to accurate forecasting of company earnings and dividends.

Citation

Fanning, D. (1979), "Technical Analysis: Forecasting or Fortune‐Telling?", Managerial Finance, Vol. 5 No. 1, pp. 29-41. https://doi.org/10.1108/eb013435