When you think of technical analysis, you may associate it with day traders or short-term activity; however, this has been a common myth for some time. In fact, technical analysis is often used on a weekly, monthly or annual basis by investors to better understand the market as a whole and see what has worked in the past and what may work in the future.

More than ever, long-term fundamental investors are embracing trading strategies and technical analysis to more actively manage their holdings in today’s volatile markets. Their toolkit includes candlestick charts, indicators and oscillators, stock screeners, charting software, backtesting and simulations, market timing and much more. They may use trading techniques to hedge their portfolios, diversify their income streams or attempt to achieve maximum profit potential.

AAII Technical Analysis community page

At AAII, we encourage investors to try different strategies and approaches in order to better understand what works for their individual needs and goals. Because technical analysis has its limitations (just like any strategy), individual investors should use charting and similar methodologies alongside a disciplined mindset and approach.

With this in mind, we’ve created a new Technical Analysis Community that focuses on how a long-term, disciplined investor might use technical strategies. This unique forum provides a space to discuss technical concepts, evaluate platforms and services, share and archive relevant resources and host topical meetings. Whether you are looking to evolve from a primarily fundamental approach or actively trade a portion of your portfolio, your questions and contributions are welcome here.

If you’re interested in joining a community of individuals passionate about how to effectively use technical analysis as a long-term investor, go to https://community.aaii.com, log in with your AAII member credentials and join the Technical Analysis Community today.

Field Notes From the Chapters: “Let’s Face the Music and Dance!”

Fred Astaire and Ginger Rogers sashayed into our national vernacular in 1936’s “Follow the Fleet.” The song has since been covered by Nat King Cole, Mel Torme, Frank Sinatra and many others. One can only wonder how Johnny Rotten, Tiny Tim or Lady Gaga would interpret it.

We use “face the music” to prep ourselves for hard facts and hard data. While AAII has 150,000+ members, only about half belong to our 30+ AAII Chapters, and far fewer actively participate. Chapters are the front line for delivering an incredible array of speakers and ideas. Chapters are the mechanism for sharing hands-on fellowship and camaraderie. They vastly enrich the AAII member experience.

If you’re not in a chapter, pick one at www.aaii.com/ChapterEmail. If you’ve slipped away from your chapter, reconnect. If you attend chapter meetings, volunteer your service to help it thrive. And dance!

—Hollis Wagenstein-Hurturk, AAII Chapter liaison

Discussion

ROBERT A from NC posted over 3 years ago:

Been there tried that. If you can make money using "technical analysis," more power to you. It always makes me feel warm and fuzzy when I discover Warren Buffett has reached a conclusion similar to mine--that TA does not work. Buying and holding good companies (or ETFs) for a long time is the best and most certain path to asset growth. A stock chart tells you nothing about whether the underlying company is a good investment.

NEIL S from TX posted over 3 years ago:

Been an investor since age 16. Best technical advice was from Alan Shaw at SmithBarney, circa 1995: “In price there is knowledge”. So, price does represent the opinion of the market at the monment. Sometimes the market overall, or for a company goes crazy(think Mr. Market, occasionally manic or depressed, described by Ben Graham), then opportunity presents. Never ignore the price, unless your time horizon is infinite.

JAMES L from TN posted over 2 years ago:

I think that T/A has a worthwhile place if used with skill and caution and with fundamental and macro data and knowledge as a backdrop. My view is that it represents the sentiment, not necessarily the knowledge, of investors in general at any moment in time, along with inside information and knowledge available to some investing activities. I would not use T/A alone without the fundamental and macro backdrop because it sometimes fails to reflect the overall riskiness of a technically and fundamentally toppy market, or the opportunity of any given oversold market. I don't think that it represents all the knowledge in the market at any given time because of speculation based on momentum and other factors which many traders and investors use to advantage. It does represent the knowledge of those that are informed and have early and accurate information of significant relevant information and events. The rest are just along for what is hopefully, a profitable ride. Whatever strategy is used, it takes judgment and skill 100% of the time to have any measure of acceptable success, unless one is willing to wait years to get their money back in certain unlucky time periods.

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