History Of Technical Analysis

Technical Analysis is the oldest device designed to beat the forex market. The history of technical analysis can be traced back to the articles published by Charles H. Dow in the Wall street journal between 1900 and 1920. But its basics concepts become popular with the contributions made by Hamilton (1922) and Rhea (1932).

Technical analysis history dates back to hundreds of years ago. It can be said that the principles of technical analysis is derived from the observation of financial market over hundreds of years. The oldest well known technical analysis method was developed by Homma Munehisa in the early 18th century, which evolved the used of candlesticks techniques.

Dow theory is based on the collected writing of Dow Jones. Charles inspired the used of technical analysis. Modern technical analysis was developed at the end of the 19th century. Ralph Nelson Elliote and William Delbert Gann are the other pioneers of technical analysis. They developed their own respective techniques in the early 20th century.

Since then, a complete jargon of words and pictures has been developed and most of today’s traders make their take their buying and selling decisions on the basis of technical analysis results appearing on their screen." Cesari and Cremonini (2003) Many more technical tools and theories have been developed and enhanced in recent decades, with an increasing emphasis on computer-assisted techniques.

Going through the above article on the history behind technical analysis will let you know an insight of the technical analysis and how it has become a part of forex trade.