Technical analysis behaves differently in offline and online conditions, just as water presents different properties when cooled below freezing or heated above boiling point. Technical analysis was developed in an offline world, under offline conditions, for end-of-day use, then adopted into the online world. Sift through the avalanche of material on the net. Its all offline, end-of-day. Nearly every US broking house with an online presence, wrap their trading platforms in charting, and standard technical tools. Absence any reference to these differences assumes the properties are the same under all conditions. Everyone's on the same page. Technology dictates reality .. etc ..
be aware, the majors use technical analysis to know where key levels are. They are bigger and better at it. These levels will be used to their advantage for an ambush. Useful tools can be deadly weapons. When used against you. Think they wont. Think again.
see law of unintended consequences
Current technology has left Technical Analysis stranded in the 1990's. Algorithmic Systems, Icebergs, Stealth Trades, and Fragmentation are designed to defeat Technical Analysis, which has yet to produce solutions to meet the challenge. Broker supplied systems are not going to do it. The topic on multi-dimension-charting discusses where charting should be going. The topic on globalisation discusses why it isn't.
Technical analysis originates from supply and demand.
Articles from the Society of Technical Analysts explain its origins
Realtime stochastic motion .. very, very different compared to a motionless state.
Relationships of technical analysis, pattern recognition, realtime motion
Available Phd research thesis into technical analysis.
Warning .. there are few available. If you're serious you will know of them.
Probabilities of continuously changing combinations ..
When markets are busy data vendors drop volume and truncate price ..
source reference : the origins of technical analysis at www.sta-uk.org
full text of research paper 10 available for download now $50
