Fundamental analysts almost all failed to predict the US stock market crash of 2001 and subsequent recession. But during 2000 nearly all technical indicators were telling investors to sell, hence the value of this approach to stock market analysis.
This article emphasizes the importance and the role of the mathematical models that bolster decision-making irrespective of the social mood in the market. Technical analysis is purely indicates the current trend of the underlying equity/commodity being studied.
It makes no future predictions but only hints the trend and trend change. The idea of Support and Resistance of price levels for the underlying is a bona-fide truth and is largely based on human psychology.
