Patterns in the Stars
The idea that technical analysis of stocks – the extraction of useful trading data from various charts mapping share prices and other data – is actually anything more than a hangover from pre-computer days is generally scoffed at by those who spend their time number crunching. From these lofty heights chartists are generally regarded with the same distain as scientists reserve for astrologers.
Which may be justified, or not, but there’s one area where the human brain can still outperform microprocessors: the unconscious extraction of patterns from visual information. Is it, in fact, possible that technical analysts are simply using the brain’s unique pattern recognition capabilities to outwit the supercomputers?
The idea that technical analysis of stocks – the extraction of useful trading data from various charts mapping share prices and other data – is actually anything more than a hangover from pre-computer days is generally scoffed at by those who spend their time number crunching. From these lofty heights chartists are generally regarded with the same distain as scientists reserve for astrologers.
Which may be justified, or not, but there’s one area where the human brain can still outperform microprocessors: the unconscious extraction of patterns from visual information. Is it, in fact, possible that technical analysts are simply using the brain’s unique pattern recognition capabilities to outwit the supercomputers?