Technical analysis

On the other hand, a technician is concerned with market action only. The basic issue here is not that fundamentals are what ultimately moves price—the technician concedes this point. The technician believes it is virtually impossible for most of us to know all the fundamentals that affect price at any given time. By the time the news reaches most of us, it has been disseminated so widely that it has been discounted in price. Because a trader makes or loses money via price movements, the technician believes this is what should be studied. In other words, the technician believes price is the ultimate fundamental.

In early 1997, corn had retreated back to the 1995 lows—in the mid-two-dollar-and-fifty-cent per bushel range. The ...

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