One of the principles of technical analysis is that History repeats itself. Believe it or not, the critics doubt that past data may be used to predict the future.
Yes, you heard that right.
It’s like saying that statistics should not rely on data or observations from the past. May I ask, by the way, how fundamentalists or traders of the economic approach base their forecasts?
Did you say the past?
Additionally, certain models that worked well in the past are used today as well to predict the future. That includes not only technical analysis but also economic and fundamental analysis.
If the Head and Shoulders reversal pattern worked well in the past, would you use it in your trading approach?
This is what we call track record, after all.
The comments are yours.