Which Trading Systems is Right for You

Technical Analysis

serves as a road map into the realm of technical analysis. It is a wondrous realm indeed, but it is easy to get lost there. Time series analysis is a complex and ever-changing discipline. Advanced studies include deviation analysis, retracement studies, statistical regressions, Fibonacci progressions, Fourier transforms, and the Box-Jenkins method, to name just a few. A separate realm is the attempt to transfer methods from other disciplines to market analysis, such as data mining, and nonlinear models, such as catastrophe theory or cellular automata.

Many traders have developed more comprehensive systems for trading using technical analysis. Joe DiNapoli's DiNapoli Levels are popular and the basis of the educational course of Derek Ching's HawaiiForex (see www.HawaiiForex.com). Charles Drummond's Point & Line Method has many ardent followers. Elliott Wave Theory is the granddaddy of them all, and remains popular with FOREX traders. Systems based on the Fibonacci number seriesâ

By Michael Duane Archer
Michael Duane Archer has been an active futures and FOREX trader for more than 35 years. He has worked in various advisory capacities, notably as a commodity trading advisor, registered SEC investment advisor, and branch manager for Heinold of Hawaii. He currently trades FOREX and futures and is involved in several technical analysis research projects.

Copyrighted 2020. Content published with author's permission.

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