Regardless of whether you use technical analysis in your trading, your trading behavior will have an impact on the technical side. Some investors only use technical analysis and pay little attention to the fundamentals. They believe that all the information is already displayed in the K-line. .
So today, let's get to know the pioneers in the field of technical analysis.
Originated from Dow
Charles Dow has an important place in financial history. He founded The Wall Street Journal, the benchmark by which all financial documents are measured, and more importantly, the Dow Jones Industrial Index. In this way, Dow opens the door to technical analysis .
The Dow Jones records daily, weekly and monthly averages, highs and lows and correlates patterns to market volatility. He then points out how these patterns explain and predict previous market events.
Market Barometer: Hamilton
If we compare the market to the sea and trading to sailing in the sea, then the navigator's barometer is an essential navigation instrument, and the Dow Theory is the market barometer given by William P. Hamilton .
The long-term fundamental trend is in line with the tide of the market: either up (bullish) or down (bearish), followed by short-term waves that last from a week to a month, and choppy sprays and tiny ripples, which are daily minor fluctuations. Hamilton combined Dow Theory with some rules (such as the confirmation of railroad averages and industrial indices) to accurately determine bull and bear markets, and wrote the book The Stock Market Barometer, which is still instructive today.
Practitioner: Robert Rhea
Robert Rhea transformed DowTheory into a practical indicator for going long or short in the market. He wrote a book on the subject: The Dow Theory (1932). Rhea successfully uses this theory to judge tops and bottoms, and is able to profit from those judgments.
He is known as a great master of Dow Theory, a master in interpreting the Dow index and stock trading volume. He successfully used Dow Theory to predict the bottom of the stock market crash in the United States from 1929 to 1932 , and gave his own Analysis and suggestions are sought after by countless people and are amazed by later generations.
Wizards: Edson Gould
Perhaps the most accurate "seeker" and holding the record for the longest trade, Edson Gould was still trading in 1983 at the age of 81.
Gould made most of his money from writing newsletters rather than investing, and his articles sold for as much as $500 in 1930. He caught almost all the major bull and bear market nodes and made several incredibly accurate predictions, such as: Dow Jones index rose 400 points in a two-year bull market, Dow Jones index would break 1040 points in 1973, etc. Wait.
Gould used charts, market psychology and indicators , including the Senti-Meter-DJIA, which is the Dow Jones Industrial Average divided by a company's dividend per share.
Gould was very good at forecasting the market and was able to make accurate quotes as he was dying. Gould died in 1987, but in 1991, as he predicted, the Dow hit 3,000, and at the time of his 1979 prediction, the Dow had not yet crossed 1,000.
Chart Expert: John Magee
Magee was one of the first people to trade solely on stock prices and their patterns on historical charts, and his "Technical Analysis of Stock Trends" (1948) has been hailed as the technical analysis bible. Magee draws the content of a price chart: share price, average line, volume. He then flips through the charts to identify widespread patterns and specific shapes such as triangles, pennants, head and shoulders, and more.
Early in his investing career, however, Magee was more concerned with his clients' portfolios, and for his own portfolios, despite the strong hold signals from his charts, he often bought and sold on instinct.
Magee's portfolio performed well in the middle and late stages of his career. From his 40s until his death at 86, Magee was one of the most disciplined tech analysts around, refusing to even read the news papers so as not to interfere with the chart signals.
Dow, Hamilton, Rhea, Gould and Magee have all left a strong mark in the development of technical analysis. Each of them has optimized and deepened the theory on the basis of their predecessors, and promoted practice to make technical analysis This way of trading goes even further.