I'm planning on doing a blogcast episode to present an argument for classical charting, but I want to do a bit of research as to what are people's biggest reservations against it. Please note I am not trying to attack people who are against technical analysis (I have been firmly against it for 6 of the past 8 years myself, and still have a lot of reservations about it despite a transition to a purely classical charting approach).
I am hoping to explore both sides of the argument, but it is going to be difficult for me to do it myself given my bias on the subject. I am not looking to argue with people, rather I am looking to argue the CONCEPT in a civil, respectful manner. In fact, I believe that is one of the biggest advantages of using the exchange, it appears to me to be a place where people with different, and often opposing points of views can test their own ideas and thus make them stronger.
To kick it off, I believe the weaknesses of Classical charting are as below:
- No forecasting value
- Does not provide an 'edge' (easily replicable)
- Questionable as to why the shape of a chart should provide any sort of forecasting value
- Shallow form of analysis resulting in a lack of conviction
Would really appreciate your help!