The Intermarket Rieki
Confirmation and non confirmations are at the heart of technical analysis. Whether it’s the Dow Theory speaking about the confirmations between Dow Industrial and Transports as a tenet for a trend continuation or it’s an intermarket ratio line breaking a multiyear trendline, we are always seeking an evidence for continuation or reversal of a trend.
Pattern identification is a high skill and also at the heart of technical analysis, but there are a few published rules regarding the workability and backtested results of non confirmations. Non confirmations are as prone to failure as any other market pattern. Times have changed. New age technicians should accept that market complexity has increased and the days of Joseph Granville confident fanfare forecasts may take a while to return. Accuracy needs more than visual skill today.
This is the reason …
Pattern identification is a high skill and also at the heart of technical analysis, but there are a few published rules regarding the workability and backtested results of non confirmations. Non confirmations are as prone to failure as any other market pattern. Times have changed. New age technicians should accept that market complexity has increased and the days of Joseph Granville confident fanfare forecasts may take a while to return. Accuracy needs more than visual skill today.
This is the reason …
This article is written for ATMA
Time Triads, Time Fractals, Time Arbitrage, Performance Cycles are terms coined by Orpheus Research. Time Triads is our weekly market letter. The report covers various aspects on TIME patterns, TIME forecast, alternative research, emerging markets, behavioral finance, market fractals, econohistory, econostatistics, time cyclicality, investment psychology, socioeconomics, pop cultural trends, macro economics, interest rates, derivatives, money management, Intermarket trends etc.