The following is from Wikipedia (click on underlines):
"Technical analysis is a security analysis discipline for forecasting the future direction of prices through the study of past market data, primarily price and volume."
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Over decades of effort, there has emerged a huge number of technical analysis indicators, oscillators, chart patterns, waves, cycles and trading rules. Fortunes have been made and lost in using or ignoring them.
However, what seems to be generally lacking is the absence of an effective, coherent and consistent structure for determining the values of the variables used in constructing any formula or measurement...for any market, for any time frame and for any price range...that could contribute to portfolio success.
Without this structure and the concepts for interpretation, a certain randomness occurs in design and interpretation of analysis tools, making it more difficult and frustrating to learn from either the successes or failures in using them.
What is undoubtedly needed is a "General Theory of Movement of Price, Volume and Time in the Financial Markets"! Now that is certainly an ambitious undertaking!
But motion toward that goal must begin somewhere...and it has. It is known as:
PhiCube™
The following are edited excerpts from the synopsis of the book Discovering Price by Bo Williams at the PhiCube™ website:
The technology represents a new paradigm in analysis and trading. ... It is the common denominator in the behavior of price, and eliminates 95% of the complexity and confusion in conventional technical analysis. The resulting mathematical model of price is extremely simple, powerful and robust and is applicable in all markets and all timeframes.
There are proprietary indicators in PhiCube™, the MIMA™ and Santo™, for example. And they are very effective. There are other indicators unique to PhiCube™ that are invaluable. In addition the usefulness of most other indicators and oscillators can probably be improved by adjusting them in conformity with PhiCube™ concepts.
Important!!!
Learning these concepts and tools does not mean that all Buy, Hold and Sell decisions will be "correct". However, it does mean that understanding these Natural Law concepts should increase your comfort level for the type of trading, investing and risk management that you do. Plus, very importantly, you will have a consistently effective "structure" for quickly evaluating opinions, your own and those of anyone else, and for developing your own ideas.
Whether you are brand new to technical analysis, a very successful "pro" or somewhere in between, what you will learn will probably give you, at least, a little more of an edge...HOWEVER, if you are like me, there will be times when using the software and applying PhiCube™ concepts that you will just have to say out loud: "Oh, my gosh!!" as you watch price move "according to plan" !!
And THAT you can take to the bank!!
< Introducing the PhiCube Analyzer3 - a Video by Bo Williams
