From the dawn of the discipline, most technical analysis practitioners have applied their tools to the financial markets -- usually with price and volume data as found in equities, bonds and commodities. Whatever the algorithm, whether momentum, stochastics, the relative strength index, the moving average convergence-divergence, on-balance volume, parabolics or oscillators in general, the intention has been to use technical indicators to derive clues from past data to forecast future prices. Extended data sets for both stock market prices and historical economic data show that there have been points in the past where fundamental data not only coincided with equity market statistical peaks and troughs, but on occasion led the stock market. There also were instances where lingering strength in the economic indicator suggested current weakness in equities would probably not last. Both series, equity and fundamental, have information that, if analyzed properly, can provide useful clues to the future direction of both the financial markets and the economy.
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