It is less interesting whether AT is actually an art (in my opinion not necessarily, but I will leave it for another entry), more so that a person is responsible for both generating profits and the correct analysis of the market with its help. In this arrangement, it is not AT that should be charged for the results, but the investor who uses it. And that changes a lot.
To find out, let’s follow the process in which AT plays a central role in making investment decisions:
- Choosing the right tools from the AT arsenal
Once we sit down to chart a market where we intend to actively invest, we need to choose technical tools to help us diagnose the state of the market and draw a conclusion as to the most likely direction of a future move.
The very word choice indicates the need for a human being to make a decision about the selection of tools and their form of use. There are plenty of options. You can try it one by one, you can do tests, you can borrow ideas from others, you can invent new ones yourself, and you can just do it by feeling only with visual inspection. Not only that, because some tools and methods are subjective (despite objective rules!), So the scale of decision options is getting longer.
As a result, you will complete your own toolbox. With its help, we will almost always obtain the assumed result of the analytical work. How effective? Certainly it will never be 100% accuracy, which unfortunately requires even more non-technical decisions.