Does Technical Analysis Work?

A number of legendary investors spend their days looking at complicated technical charts - but is it a strategy for investment success? 

Chris Menon 26 November, 2019 | 2:20PM

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Chartism, more commonly called technical analysis, involves the close study of past patterns in stock prices to help determine current investment decisions. It is derided by many investment purists as pseudo-scientific mumbo-jumbo.

However, the strategy is widely used by both professional and amateur investors. Its most famous adherent was the legendary fund manager Anthony Bolton who ran the Fidelity Special Situations fund (now Silver-Rated and run by Alex Wright) from 1979 to 2007, during which time he delivered an annualised 19.5% return for investors.

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About Author

Chris Menon  is a financial journalist writing for Morningstar.co.uk.

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