Oversimplification

This is an example of what many of the critics of technical analysis see. This is an example of what we see.

“Everything should be made as simple as possible, but no simpler.

-Albert Einstein

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2 Responses to Oversimplification

  1. Bill R says:

    You know, the really sad thing is that, a couple of years ago, Eddy posted a chart on the performance of momentum stocks on his blog (it was the old 12 months lagged one month definition of “momentum”) and commented on how “surprised” he was by it. That was YEARS AGO.

    Eddy’s a smart guy, and I know he’s read a large amount of research in a variety of places, but blind spots like this one on TA are part of the reason he never made my regular blog-reading rotation.

  2. Andy Hyer says:

    People see what they want to see. The key is to let the data do the talking.

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