I'm not sure what Stephen would include under "technical analysis" either.
But, the term Technical Analysis has a precise meaning among stock traders. http://en.wikipedia.org/wiki/Technical_analysis http://stockcharts.com/school/doku.php?id=chart_school http://www.investopedia.com/university/technical/ It is a collection of numerical and pattern interpretation procedures of the past behavior of a security (price and volume of trading, usually) that are used to determine the near and long term change in value of that security. Technical analysis does not take into account any financial characteristics of the economy, nation, sector of operations, company finances, sales, cash flow, outstanding shares, competitive position, etc. It is just based on charts of the past behavior of the stock (or other security) price. Example: Technical analysis occasionally talk in terms of "head and shoulder" patterns (meaning the stock will head downward due to 'falling off the other shoulder.' (I'm not kidding.) http://www.chartpatterns.com/headandshoulders.htm >From what I can tell, in its degree of scholarship and supporting evidence it is indistinguishable from psychic readings. Therefore, it is no surprise to me that stock brokers and traders are calling psychics in greater numbers (assuming the anecdotes in the story represent an actual trend). Many of them believe in Technical Analysis regardless of its lack of theoretical and empirical support, so why not call a psychic, too? -- Paul Bernhardt Frostburg State University Frostburg, MD, USA On 11/24/08 3:15 AM, "Jim Clark" <[EMAIL PROTECTED]> wrote: > Hi > > I'm not too certain what Stephen would include under "technical analysis", but > it does appear that the classic superiority of actuarial over clinical > prediction applies to the stock market as well as numerous other domains. > See: > > http://www.psych.umn.edu/faculty/grove/096clinicalversusmechanicalprediction.p > df > > Take care > Jim > > James M. Clark > Professor of Psychology > 204-786-9757 > 204-774-4134 Fax > [EMAIL PROTECTED] > > Department of Psychology > University of Winnipeg > Winnipeg, Manitoba > R3B 2E9 > CANADA > > >>>> <[EMAIL PROTECTED]> 23-Nov-08 10:15 PM >>> > On 23 Nov 2008 at 10:35, Christopher D. Green wrote: > >> In case you were wondering why (scientific) psychology (still) doesn't >> get much respect from natural scientists, psychics are apparently doing > a >> booming business during the current business bust. > > Why the stock market needs psychics is beyond me. They already have their > own well-established mediums of the money, those who practice so-called > "technical analysis". This is the widespread belief that where the market > is going can be predicted by seeing where it went, with much arcane mumbo- > jumbo. Its practitioners study charts of market movement the way > astrologers study the planets, with about the same effect. > > Stephen > > ----------------------------------------------------------------- > Stephen L. Black, Ph.D. > Professor of Psychology, Emeritus > Bishop's University e-mail: [EMAIL PROTECTED] > 2600 College St. > Sherbrooke QC J1M 1Z7 > Canada > > Subscribe to discussion list (TIPS) for the teaching of > psychology at http://flightline.highline.edu/sfrantz/tips/ > ----------------------------------------------------------------------- > > --- > To make changes to your subscription contact: > > Bill Southerly ([EMAIL PROTECTED]) > > > --- > To make changes to your subscription contact: > > Bill Southerly ([EMAIL PROTECTED]) --- To make changes to your subscription contact: Bill Southerly ([EMAIL PROTECTED])
