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Definitions of Technical Analysis:
Rule 1: Everything is already built into the price.
Rule 2: Prices move in zig-zags and trend.
Rule 3: History repeats itself in time, place and pattern.
Joseph Granville
" Technical analysis is the art of tracking the market, following the footsteps of the "smart money" crowd. There is a readable pattern no matter what the guises, and the market has a set path to follow."
James Dines
" Technical analysis is the process of finding the significant patterns that best summarize the behaviour of people in the market. Charts not only tell what was, they tell what is; and a trend from what was to is (projected linearly into the will be) contains better percentages than clumsy guessing. Stock market success is not should be (a function of hope) but is (a function of pragmatic fact)."
John Murphy
" Technical analysis is the study of market or price actions, primarily through the use of charts, for the purpose of forecasting future price trends."
Simon Sim
" Technical analysis is basically statistical analysis and we are doing it in our everyday life; we learned it in schools and universities; the government uses it to forecast future directions and trends, the economists also uses charts to present and support their analysis. The difference between the pro TA and the everyday life TA is that the pro TA uses more advance mathematical techniques and statistical formula to smooth and filter the data ie the open, high, low, close and volume, and then project the data distribution into an oscillator, with some advance users converting the art into "black box" or mechanical and intelligent systems.
Feeling is subjective, fact is objective. The balance between subjective and objective analysis in trading is very important. A good trader feels the market but trade with the fact."
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