Why Technical Analysis Matters

by Michael Kahn

Why Technical Analysis Matters Splash image

Technical analysis is a bit of a misnomer since it is really not that technical. A better name for the use of charts to make investment decisions might be risk/reward analysis or even market psychology.

Sure, there are some complex mathematical concepts involved with some of its more esoteric indicators. But at its core, technical analysis is simply a method of determining if a stock or the market as a whole is worth buying or selling. Once we identify this we are way ahead of the game with

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Michael Kahn CMT, writes the twice-weekly Getting Technical column for Barron’s Online ( and the daily Quick Takes Pro newsletter ( Kahn will be speaking at the AAII Investor Conference this fall; go to for more details.


Edward from New York posted over 2 years ago:

I have been a Corning fan for years - your thoughts please

Vernon from Florida posted over 2 years ago:

If someone is seriously interested in Technical Analysis of stocks, I recommend the "Learning Article" on the DecisionPoint web site - excellent introduction.

Dana from Massachusetts posted over 2 years ago:

Another good reference book is William J. O'Neil's book "How to Make Money in Stocks"- although it will require a few readings. Good combinations of Fundamental and Technical analysis.

Sherwin from Idaho posted over 2 years ago:

Clear and to the point. I will try it.

Sherwin from Idaho posted over 2 years ago:

Clear and to the point. I will try it.

Don from Indiana posted over 2 years ago:

Very informative article. I plan to print a copy and keep it close to my computer as a reference tool.

Vaidy Bala from posted about 1 year ago:

Please permit me to suggest a title for Technical analysis, a refined, more scientific approach - Market Psychotechnoloy Analysis (MPA). This kind of blends the fact findings -science with that of human behaviors - emotions and feelings - drivers of our economic engines.
Thanks for reading

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