Mac Murray

Technical Analysis: Diagnostic versus Predictive

DIAGNOSTIC TECHNICAL ANALYSIS
.
Although you are unlikely to see the labels I’m using here elsewhere, based on my experience Technical Analysis typically falls into one of two categories: Predictive or Diagnostic.

Diagnostic

A reality-based approach that deploys charts and indicators as a diagnostic tool which tells us precisely what is happening as it unfolds or afterward it has occurred. This diagnosis, when compared with historical price movement, helps us calculate mathematical probabilities of various scenarios.

MORE TO COME. ..

%d bloggers like this: