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39: Does Technical Analysis Really Work? The 3 Big Game-Changing Questions It Took Us 12 Months To Answer

39: Does Technical Analysis Really Work? The 3 Big Game-Changing Questions It Took Us 12 Months To Answer

FromThe Option Alpha Podcast


39: Does Technical Analysis Really Work? The 3 Big Game-Changing Questions It Took Us 12 Months To Answer

FromThe Option Alpha Podcast

ratings:
Length:
14 minutes
Released:
Jan 12, 2016
Format:
Podcast episode

Description

Do you remember the feeling you had the first time you were introduced to technical analysis or stock charting indicators in general? You were probably at some weekend stock market seminar or watching a video online, and everything just clicked in your mind. The volume signaling that more buyers were present in the market to drive up the price, or the lines showing where support and resistance were; it all just made logical sense. Forget reading reports and company filings digging for great stocks to buy. You finally had the tools you needed to conquer the markets and really start making money. Technical analysis was the “magic” bullet that all the pros were using, and now you were on the inside. Still, shortly after your introduction to technical analysis, in the back of your head a little voice asked, “Does this stuff really work?” It might have been immediately after your moment of glorious realization, or it could have been days or weeks later, but I guarantee it happened – because it happened to me too. Honestly Now, How Reliable is Technical Analysis for Stock Signals? Yet doesn’t it seem fair to ask about the reliability of technical analysis in today’s market right? With all the hype around technicals and the money being invested purely based off stock charts and volume indicators, we should know what works or what doesn’t? However, there has not been one conclusive report on the reliability and performance of various technical analysis indicators published that we’ve seen. Not one. So, I decided to finally do the research myself. . . During the initial planning phases leading up to this massive research report, my team and I found many different software services that offered the ability to backtest stocks and indicators one at a time. But in my opinion, everything was too narrow in focus. Nothing I found gave me the ability to split test hundreds of indicator settings, over an extended period with hundreds of different stocks. The 3 Big Questions about Technical Analysis Indicators We Asked 12 Months Ago Therefore, my team and I set out to create the most comprehensive backtesting report imaginable answering the three biggest questions investors had when it came to technical analysis: Is Technical Analysis more reliable than randomly picking a stock’s direction? If so, can you generate excess returns above just holding SPY on a consistent basis? If so, what are the specific indicators and settings that work best long-term? While I knew it would require an enormous commitment, I also was aware that it would help transform the way hundreds of thousands of investors, just like you, think about technical analysis. Imagine being able to finally know which technical indictors are the most reliable, most consistent and most profitable… After 12+ months of backtesting, analyzing more than 17.34 million individual trades, and investing nearly six figures into data, software, and four new employees, I am thrilled to finally launch our report this coming Monday, January 18th.
Released:
Jan 12, 2016
Format:
Podcast episode

Titles in the series (100)

We are on a mission to help you make smarter investments and trades – it’s just that simple. So if that means pulling back the curtain on everything you know (or thought you knew) about options trading and the stock market then so be it.