The philosophy of technical analysis. (From the book. D.Merfi "Technical Analysis of Futures Markets: Theory and prac

ENTRY
Before embarking on the study of methods and tools for technical ispol¬zuemyh
analysis of commodity futures ryn¬kov, it is first necessary to determine what,
in fact, it represents the technical analysis. Furthermore, it should stop
its philosophical basis, a clear distinction between the technical and
anali¬zom fundamental and, finally, to mention the criticisms that
often subjected to technical analysis.
This writer is fully convinced that it is necessary to start with a definition
technical analysis and, more importantly, from the philosophical roots that underpin
Technical Analysis.
So, we proceed to the definition. Technical analysis - the study of the dynamics of the market,
often through grafi¬kov, in order to predict the future direction of
prices. The term "market dynamics" includes three osnov¬nyh information source,
at the disposal of the technical analyst, namely the price, volume and open
interest. In our opinion, the term "price trends", which is often used, too narrow,
as most technical analysts commodity futures markets for is¬polzuyut
their forecasts, volume and open interest, and not just price. But, despite these
differences sledu¬et keep in mind that in the context of this book, the terms "market dynamics" and
"Price Trends" will be used interchangeably