In 1994, the MTA recognized Don Worden’s achievements with the MTA Annual Award. This award recognizes lifelong 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 firstname.lastname@example.org.
DON WORDENby Michael Carr, CMT
Don Worden founded Worden & Worden, Inc., a stock market newsletter publishing company, in 1960 and continued providing tools for institutional and individual investors over the next six decades....
TAPE READING IN THE SLEEPY FIFTIESby Don Worden
Editor’s note: The best explanation of Don Worden’s work comes from Don Worden himself. For many years, he provided newsletter readers and users of TC2000 with his thoughts on the market and...
PRICE AND VOLUME, DIGGING DEEPERby Buff Dormeier, CMT & Michael Carr, CMT
Buff Dormeier, CMT, has written extensively about how to incorporate volume into a comprehensive analysis. His work on Price & Volume, Digging Deeper was recognized with the Dow Award in 2007....
THE DOW AWARDby Buff Dormeier, CMT
Editor’s note: This was originally published in December 2008. The Market Technicians Association established the Charles H. Dow Award to encourage technically based research and strengthen the...
BLOOMBERG BRIEF HIGHLIGHTS VALUE OF FIBONACCI RATIOS
In the June 26 issue of Bloomberg Brief Technical Strategies, Bloomberg’s analysts offered insights into how traders could use Fibonacci ratios to develop trading strategies. In Technicals Show...
TRADERMADE, AN FX SERVICEby Michael Carr, CMT
Most charting services attempt to deliver everything a trader could possibly dream of. TraderMade has taken a different approach and provides forex traders with what they actually need. TraderMade is...
INTERVIEW WITH JAMES DANIEL, CMTby James A. Daniel, CFP, CMT, EA & Amber Hestla-Barnhart
How would you describe your job? I run a small RIA and serve retail clientele as a financial planner and investment manager. I pursued the CMT designation as a way to differentiate myself from other...
MARRIED TO A MISERby James A. Daniel, CFP, CMT, EA
Editor’s note: MarriedToAMiser.com is a blog by James Daniel that he has maintained since October of 2009. He notes that the site is regularly “updated with a little help from his wife to give...
THE DENT METHODby Michael Carr, CMT
Editor’s note: Recently, Dent Research posted a position in the MTA’s Career Development Center. If you are actively seeking a new position, the Career Development Center could be among your most...
CHART OF THE MONTH
Volatility, as measured by the VIX, is low and is now at levels last seen in 2007 and previously in the mid-1990’s. Although low volatility is often associated with market tops, there is no...
New Educational Content This Month
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An Introduction to Technical Analysis
Presenter(s): Ralph Acampora, CMT
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High Profit Candlestick Patterns
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Structural Interest Rate Reversal Finally Underway?
Presenter(s): Louise Yamada, CMT