definitions

Neoclassical Technical Analysis

In his ground breaking book, Trend Qualification and Trading, L.A. Little forever put his stamp on technical analysis moving the field forth into the the neoclassical world. Trend qualification has, at its core, the idea that not all trends are created equally. Some are simply better than others.

In the follow-up book, Trend Trading Set-Ups, L.A. provided the data behind the assertion of unequal trends and expanded the foundations of neoclassical thought to thoroughly explain how supply and demand can be found on the charts using anchor bars (swing points, high volume and wide price spread anchor bars) and the resultant anchor zones. He painstaking examined the data behind these notions and showed how the concept of a retest and regenerate process applies to both suspect and confirmed trends. Finally he examined the importance and power of the testing process and how it provides powerful clues about what is next in the market, the sectors and individual stocks.

These concepts are the core concepts in neoclassical technical analysis and represents a break from the past by simplifying rather than complicating the trading landscape and visualizing supply and demand on the charts.

Neoclassical technical analysis is the embodiment of these collective thoughts. It takes classical technical analysis and boils it down to just the pure concepts of supply and demand and how to recognize them. It works across all time frames and all markets.

That is neoclassical technical analysis - an essential technical analysis without all the fluff and complications.