Thirty-five years ago, technical analysis was simple. It was the analysis of stock charts in the most basic of forms: the purity of price, the clarity of time, and the validity of quantity. Emphasis since then has been on developing indicators that would reveal more about the stock chart in an easier way. Many excellent indicators have been written in the pursuit of creating an improved method for stock chart analysis. In placing so much importance on indicators the art of reading price in its pure form is being lost in the next generation of technical analysts. In the early 1990’s a revival of price analysis study occurred when Steven Nison, CMT introduced candlesticks to western technical analysts. Yet even then, price took a back seat to indicators when it came to entry or exit signals. Recently, there has been a return to the mentality that all things about a chart should

Tom McClellan is the editor of “The McClellan Market Report” a comprehensive daily, as well as bimonthly analysis of market activity and trends. Tom’s work is characterized by a succinct articulation of an elaborate array of technical tools and barometers, and is invariably punctuated by insightful, informative and historically relevant anecdotes. Tom’s style of writing has an unmistakable charm, with touches of humor and irony, ever endearing him to his many readers. He is the son of the legendary Sherman McClellan and his late wife, Marian McClellan, both of whom were honored in 2004 with a Lifetime Achievement Award by the Market Technicians Association. Editors note: You can read Sherman’s remarks from that awards ceremony at http://www.mcoscillator.com/reports/special/MTA_speech.html, and also read a booklet that was given to attendees about the McClellans’ work at http://www.mcoscillator.com/reports/special/McClellan_MTAaward.pdf] Sherman McClellan is currently a member of the Board of Directors for the Market Technicians Association, and

Readers of Forbes magazine might have been surprised to see a picture of long-time MTA Member Robert W. Colby, CMT, on page 136 of the June 4, 2007 issue. It’s not that Colby’s work isn’t worthy of national attention, it most certainly is. The surprise is that Forbes would give so much space to an article about technical analysis. Forbes Senior Editor Daniel Fisher, CFA, wrote a fair and balanced article about trading ETFs using Colby’s relative strength strategy. The article also quotes another long-time MTA Member, John Bollinger, CFA, CMT, explaining some of the benefits individual investors obtain from using ETFs. Technicians are quite familiar with the concept of relative strength portfolios, of course, since we invented it! Colby always credits MTA Director Charles D. Kirkpatrick II, CMT, for publishing (in the MTA’s own Journal of Technical Analysis) compelling data showing that relative strength portfolios consistently outperform. [I can’t find