In my opinion the Market Dynamics version of technical analysis is a tool for judging long-term trends and the reversals of direction of those trends. It is not a tool for prediction.
It has certain rules but it is more or less an art form – I certainly don’t believe it is scientific.
It helps in a majority of cases (65% to 75% estimate by WCA) and fails in others or at least the trends quickly change direction from what was hoped for!
If I can correctly gauge the direction of the long-term trend I will be able to advise and manage my portfolios successfully. If Market Dynamics is used with discipline - it will require the sale of losers and the retention of winners as long as they are able to perform. That, after all, is the key to successful portfolio management. WCA
By W. Clay Allen CFA
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Summary: Index