Technical analysis
A method that studies the history of price and volume in order to describe market behaviour; it asserts nothing about causes.
How to read the number
It answers what has already happened to the price and how that looks now. The question of why belongs to the issuer's business, and the question of what comes next belongs to nothing testable.
When the metric lies
Familiar shapes appear in randomly generated series too. Testing a method requires rules written down before the history is examined — otherwise what is tested is memory, not the rule.
Also known as: chart analysis