Several decades ago technical analysis of the market had some value when computers were not easily available to the masses. The advantage of this exclusivity was progressively reduced as PCs and accompanying software became inexpensive and available to millions of traders, investors and money managers around the globe using the internet to trade instantaneously.
The whole concept of computerized trading is now utilized by just about everybody; that is, so-called professionals as well as amateurs. The fact that everybody is executing the same moves at the same time, as informed by the software analysis, renders this approach flawed and unsuccessful.
The majority of money managers and private investors want to rely on technology to make difficult decisions. Therefore they are attracted to financial trading programs. Nearly all hedge funds, banks, and brokerage desks are handling trade decisions daily for billions of dollars, using software models that are very similar to trading rules and platforms being used by other traders all over the world. Every few years somebody comes up with a new black box with minor tweaks in software. But the algorithms are merely the same as the others.
Everyone in the investment world wants to find an easy way to make easy lucrative trading decisions. In reality, there is no easy way. Trading is an art rather than a science.
Remember this: the financial markets will not allow any popularized trading theories or concepts to succeed.
So how do we take advantage of this computerized trading mentality? In many cases we look for valuable signals to do the exact opposite. We have designed countermeasures to take advantage of the flaws of software driven trading models. There is only a small group of traders who use hard work, pure intelligence, and most of all, a great deal of experience to understand the mass psychology and to consistently make money in the stock and treasury markets.