Main Article Content
Abstract
Technical analysis uses past prices in order to predict future prices. It tries to detect some predefined "patterns" in price series, and claims it is capable of exploiting the trends that it discovers. The methodology of technical analysis rests upon the assumption that history tends to repeat itself in the stock exchange. If a certain pattern of activity has in the past produced certain results nine times out of ten, one can assume a strong likelihood of the same outcome whenever this pattern appears in the future.