Technical Analysis Can Greatly Increase Options Profitability
Technical Analysis is a method of predicting future price movements in an underlying financial instrument based on observation of historical stock price movements. Financial Markets are chaotic systems which means price movements can't be definitively predicted because markets are non-linear and never repeats. However, much like the weather, future prices can be forecasted with a certain probability of the forecast coming to fruition. Much like the weather can be forecasted as 30% chance of rain, financial markets can be forecasted as a 30% chance of pricing arriving at a certain point. Technical Analysis will not be right 100% or even 80% of the time, but a edge of just 51% with proper money management is possible. Technical Analysis usually allows for 60%- 75% forecast which gives an outstanding edge for those who take the time to use this powerful tool.