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It's not complete bullshit, just unusable for trading nowdays: these algorithms that found trends worked until better algorithms were used:

http://en.wikipedia.org/wiki/Technical_analysis#Scientific_T... The results were positive with an overwhelming statistical confidence for each of the patterns using the data set of all S&P 500 stocks daily for the five year period 1992-1996.



> The results were positive with an overwhelming statistical confidence for each of the patterns using the data set of all S&P 500 stocks daily for the five year period 1992-1996.

Looks a bit like cherry picking


> It's not complete bullshit

The fact that line even has to be used is a massive red flag.

> overwhelming statistical confidence for each of the patterns using the data set of all S&P 500 stocks daily for the five year period 1992-1996.

And tech VCs investing in anything from 1995-2000 were positive with an overwhelming statistical confidence that their portfolios were anything but randomly chosen.




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