Many technical indicators boil down to a handful of unique variables


Dr. Brett Steenbarger at Traderfeed:

The bad news is that the many technical indicators out there really just boil down to a handful of unique variables. The good news is that, overall, these unique variables do possess statistically significant predictive validity with respect to the prospective movement of stock index prices. The challenging news is that even this significant predictive value leaves the lion’s share of the future movement of stock index prices unexplained.

Source: The Psychology of Quantitative Analysis

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