In 1994, the CMT Association recognized Don Worden’s achievements with the CMT Association Annual Award. This award recognizes life-long outstanding contribution to the development and widespread acceptance of technical analysis by institutional practitioners and individual investors. Don Worden truly did spend his lifetime making technical analysis accessible to institutions and individuals.
Sadly, Don passed away on May 31, 2014 at the age of 82. He was born before technical analysis was a formal field of study. His work from the 1950’s has led to a number of advances in technical analysis. He was a pioneer in the analysis of volume and his thoughts on how to interpret volume evolved as the markets changed. That might be Don’s greatest contribution to technical analysis – his ability to think about the markets as they are and to change his approach when the markets changed. Too many analysts impose rigid beliefs on the market and apply indicators with strict rules, ignoring changes in the market environment and risking losses as those changes render indicators less effective. In “Tape Reading in the Sleepy Fifties” we have Don’s own words to tell us how and why his thinking changed over a 40-year period. When an indicator stopped working, he explains, he sought to understand why and then built on his previous work.
In honor of Don’s contributions, we are also featuring the work of another pioneer in volume analysis, Buff Dormeier, CMT. Buff has quantified a unique approach to volume analysis and his work deserves a place next to Don Worden’s.
In future issues, we hope to continue demonstrating how thought leaders in technical analysis think about their work. If you would like more details on a particular technician’s work, please send your suggestions to email@example.com.
- Michael Carr, CMT