Difference between revisions of "Timeline of technical analysis"

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| 5th century B.C. || Speculation || Traders at the Athenian stock exchanges manipulate prices based on news and prices, with incidents producing instantaneous effects due to the lack of time bargains.<ref name="Hasanhodzic"/> || {{w|Greece}}
 
| 5th century B.C. || Speculation || Traders at the Athenian stock exchanges manipulate prices based on news and prices, with incidents producing instantaneous effects due to the lack of time bargains.<ref name="Hasanhodzic"/> || {{w|Greece}}
 
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| Early 5th century B.C. || Religious Dedication || A guild of merchants dedicate a temple to Mercury, the god of trade.<ref name="Hasanhodzic"/> || {{w|Greece}}
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| Early 5th century B.C. || Religious Dedication || A guild of merchants in Greece dedicate a temple to Mercury, the Roman god of trade, commerce, and profit. This religious dedication highlights the strong cultural significance of trade within Greek society and the reverence merchants hold for deities associated with commerce. By establishing a temple, merchants seek divine favor and protection over their economic activities, emphasizing the integration of religious practices with business pursuits.<ref name="Hasanhodzic"/> || {{w|Greece}}
 
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| 400 B.C. || Babylonian Astronomical Diaries and Market Predictions || Babylonians use astronomical diaries to record market data and make forecasts based on celestial observations, demonstrating an early form of technical analysis.<ref name="Hasanhodzic"/> || {{w|Babylonia}}
 
| 400 B.C. || Babylonian Astronomical Diaries and Market Predictions || Babylonians use astronomical diaries to record market data and make forecasts based on celestial observations, demonstrating an early form of technical analysis.<ref name="Hasanhodzic"/> || {{w|Babylonia}}

Revision as of 15:50, 10 October 2024

This is a timeline of technical analysis.

Sample questions

The following are some interesting questions that can be answered by reading this timeline:

Big picture

Period Event Type Details
50th century B.C. - 20th century B.C. Early Markets Settlers in the Jordan Valley engage in trade with nomads, marking the early roots of market exchanges. Ancient Babylonians develop a system of weights and measures, formalize business deals with contracts, and introduce limited partnerships. Sargon the Great establishes the first Mesopotamian empire, highlighting the importance of trade and market practices. Decentralized city-states emerge after the fall of the Third Dynasty of Ur, each run by merchants conducting trade.[1]
10th century B.C. - 5th century B.C. Development of Market Systems Political decentralization in the Iron Age allows merchants greater freedom in business activities and physical movement. The earliest evidence of coins comes from Lydia, facilitating trade and market activities. Greek banking emerges, with evidence related to the Athenian grain trade. Traders at the Athenian stock exchanges manipulate prices based on news. A guild of merchants dedicates a temple to Mercury, the god of trade.[1]
4th century B.C. - 13th century Technical Analysis and Urban Growth Athenian merchants use geographical and environmental information to develop methods for technical analysis. They change their strategies based on timely news and data on price fluctuations, attempting to predict future prices and infer market sentiment. Roman commerce reaches its height, characterized by market-oriented agricultural production and an increase in demand for luxuries. The world's first known printed book, a Buddhist Sutra, is produced in China. The classics are printed in China. The Champagne fairs attract traders from various countries, dealing in textiles, leather, and financial transactions. Wang Chih writes A Further Collection of Miscellaneous Items, highlighting the market jargon and practices of brokers. Sophisticated traveling merchants and sedentary merchants conduct international trade and communicate through land mail. The market economy and urban growth peak in China; Marco Polo describes Su-chou and Hang-chou.[1]
14th century - 20th century Modern Market Systems The bourse is established in Bruges, becoming a key financial institution for traders. Hideyoshi Toyotomi ends the currency economy in Japan, leading to the development of sophisticated trading methods. Traders in the Dutch East India Company plot changes in stock prices, marking the beginning of technical analysis. Amsterdam-based merchant Joseph de la Vega documents Dutch financial markets. Rice futures market is established in Osaka, Japan, with the development of candlestick charting. A Record of the Customs of Wu describes the increase in market towns and commerce. Japanese rice traders develop candlestick charting. Munehisa Homma writes The Fountain of Gold and other works documenting early Japanese technical analysis. Charles Dow studies stock market data, leading to the development of Dow Theory. The emergence of price charts for visualizing the market becomes prevalent in France, England, and Bavaria. William Hamilton refines Dow Theory, explaining market trends using a metaphor of ocean waves. Towards the 20th century, traders like Jesse Livermore use ticker tape to track market prices and anticipate market movements.[1][2][3][4][5][6][7][8][9]


Summary by century

Century Event Type Details Location
50th century B.C. Early Market Practices Settlers in the Jordan Valley initiate early market practices by engaging in trade with nomadic groups. This period represents one of the earliest instances of organized economic interaction between settled agricultural communities and mobile herders. These exchanges likely involve the barter of goods such as agricultural produce and livestock, laying the groundwork for future trade networks. This foundational economic activity contributes to the evolution of more complex market systems, setting the stage for the emergence of formalized trading practices.[1]
30th century B.C. Establishment of Weights and Measures Ancient Babylonians significantly advanced economic practices by establishing a formal system of weights and measures. This development enables more accurate trade and commerce, as merchants can standardize the quantity and value of goods exchanged. Additionally, the Babylonians formalize business transactions through written contracts, which provide legal frameworks for agreements and reduce disputes. The introduction of limited partnerships allows individuals to pool resources while limiting personal liability, facilitating larger trade ventures and investments.[1]
24th century B.C. Sargon's Mesopotamian Empire Sargon the Great establishes the first Mesopotamian empire, a significant milestone that underscores the critical role of trade and market practices in ancient economies. Under Sargon's rule, the empire facilitates extensive trade networks across the region, connecting diverse cultures and enhancing economic exchange. Sargon implements policies that promote commerce, including the standardization of weights and measures, which streamline transactions and buid trust among traders. The empire's administrative innovations and centralize governance further support market activities, allowing for the growth of urban centers and marketplaces. This emphasis on trade not only enrichs Mesopotamia economically but also sets the foundation for future market analysis and economic strategies.[1]
20th century B.C. Rise of City-States Decentralized city-states emerge after the fall of the Third Dynasty of Ur, each run by merchants conducting trade.[1] Mesopotamia
10th century B.C. Iron Age Market Freedom Political decentralization in the Iron Age allows merchants greater freedom in business activities and physical movement.[1] Various regions
8th century B.C. Commodity Price Records, Clay Tablets Babylonians document commodity values and keep diaries of astronomical observations and prices, an early form of technical analysis.[1] Babylonia
7th century B.C. Introduction of Coinage The earliest evidence of coins comes from Lydia, facilitating trade and market activities.[1] Lydia
5th century B.C. Greek Banks, Speculation, Religious Dedication Greek banking emerges, with evidence related to the Athenian grain trade. Traders at the Athenian stock exchanges manipulate prices based on news. A guild of merchants dedicate a temple to Mercury, the god of trade.[1] Greece, Athens
4th century B.C. Technical Analysis, Speculation, Market Sentiment Athenian merchants use geographical and environmental information to develop methods for technical analysis. They change their strategies based on timely news and data on price fluctuations, attempting to predict future prices and infer market sentiment.[1] Athens
1st century B.C. - 1st century A.D. Economic Prosperity Roman commerce reaches its height, characterized by market-oriented agricultural production and an increase in demand for luxuries.[1] Rome
9th century Background The world's first known printed book, a Buddhist sutra, is produced in China.[1] China
10th century Printing The classics are printed in China.[1] Various regions
12th-13th century Golden Age of Champagne Fairs, Literature The Champagne fairs attract traders from various countries, dealing in textiles, leather, and financial transactions.[1] Wang Chih writes A Further Collection of Miscellaneous Items, highlighting the market jargon and practices of brokers.[1] Champagne, France, China
13th century Merchants, Historical Sophisticated traveling merchants and sedentary merchants conduct international trade and communicate through land mail. The market economy and urban growth peak in China; Marco Polo describes Su-chou and Hang-chou.[1] Various regions
14th century Institution The bourse is established in Bruges, becoming a key financial institution for traders.[1] Bruges
16th century Political Change Hideyoshi Toyotomi ends the currency economy in Japan, leading to the development of sophisticated trading methods.[1] Japan
17th century Early Form, Early Descriptions, Futures Market, Publication Traders in the Dutch East India Company plot changes in stock prices, marking the beginning of technical analysis.[2] Amsterdam-based merchant Joseph de la Vega documents Dutch financial markets.[3] Rice futures market is established in Osaka, Japan, with the development of candlestick charting.[4][5] A Record of the Customs of Wu describes the increase in market towns and commerce.[1] Netherlands, Japan
18th century Development of Candlestick Charting, Publications Japanese rice traders develop candlestick charting. Munehisa Homma writes *The Fountain of Gold* and other works documenting early Japanese technical analysis.[4][1] Japan
19th century Dow Theory Development, Price Charts Charles Dow studies stock market data, leading to the development of Dow Theory. The emergence of price charts for visualizing the market becomes prevalent in France, England, and Bavaria.[6][7][5][8][9] United States, France, England, Bavaria
20th century Dow Theory Expansion, Use of Ticker Tape William Hamilton refines Dow Theory, explaining market trends using a metaphor of ocean waves. Traders like Jesse Livermore use ticker tape to track market prices and anticipate market movements.[4][6][8] United States

Full timeline

Year Event type Details Location
5000 B.C. Early Market Practices In the Neolithic era, settlers in the Jordan Valley engage in trade with nomads, exchanging resources such as salt and sulfur for obsidian and domesticated animals. This marks the early roots of market exchanges.[1] Jordan Valley
3000 B.C. Establishment of Weights and Measures Ancient Babylonians develop a system of weights and measures, formalize business deals with contracts, and introduce limited partnerships, laying the groundwork for technical analysis.[1] Babylonia
2400 B.C. Sargon's Mesopotamian Empire Sargon the Great establishes the first Mesopotamian empire with its capital at Agade, where merchants play a significant role in economic life, highlighting the importance of trade and market practices.[1] Mesopotamia
2000 B.C. Rise of City-States After the fall of the Third Dynasty of Ur, decentralized city-states emerge, each run by merchants who establish trading colonies and conduct trade, a critical factor in market analysis.[1] Mesopotamia
1000 B.C. Iron Age Market Freedom In the Iron Age, political decentralization allowed merchants greater freedom in their business activities and physical movement, further enhancing trade practices.[1] Various regions
747 B.C. Babylonian Commodity Price Records Begin Babylonians begin documenting the values of six commodities (barley, dates, mustard/cuscuta, cress/cardamom, sesame, and wool) in astronomical diaries, resembling modern practices of tracking selected stocks.[1] Babylonia
700 B.C. Babylonian Clay Tablets Babylonians keep diaries of astronomical observations and commodity prices, recording price fluctuations and market trends, an early form of technical analysis.[1] Babylonia
650 B.C. Introduction of Coinage The earliest evidence of coins comes from the Lydian capital of Sardis. The use of coins for commercial purposes became widespread in Greece by the fifth century B.C., facilitating trade and market activities.[1] Lydia
651 B.C. Earliest Known Babylonian Diary The earliest known Babylonian diary, covering 12 months, documents astronomical observations and market prices, providing a continuous record of market trends and fluctuations.[1] Babylonia
585 B.C. Speculation Thales of Miletos corners the oil market by buying or renting all the oil presses after forecasting a good harvest of the oil crop.[1] Miletos
561 B.C. Pisistratus’ Economic Reforms During his tyranny in Athens, Pisistratus introduces market-oriented economic institutions, encouraging crop specialization and urbanization, which would help develop the market system further.[1] Athens
500 B.C. Emergence of Greek Banks Greek banking emerges, with the earliest evidence related to the Athenian grain trade. Banks, initially temples, become private institutions, playing a crucial role in trade and market economies.[1] Greece
5th century B.C. Speculation Traders at the Athenian stock exchanges manipulate prices based on news and prices, with incidents producing instantaneous effects due to the lack of time bargains.[1] Greece
Early 5th century B.C. Religious Dedication A guild of merchants in Greece dedicate a temple to Mercury, the Roman god of trade, commerce, and profit. This religious dedication highlights the strong cultural significance of trade within Greek society and the reverence merchants hold for deities associated with commerce. By establishing a temple, merchants seek divine favor and protection over their economic activities, emphasizing the integration of religious practices with business pursuits.[1] Greece
400 B.C. Babylonian Astronomical Diaries and Market Predictions Babylonians use astronomical diaries to record market data and make forecasts based on celestial observations, demonstrating an early form of technical analysis.[1] Babylonia
330 B.C. Speculation In an early example of market manipulation and speculation, Cleomenes plans a wheat corner, attempting to limit production to impose his own prices.[1] Greece
324 B.C. Insurance Antimenes the Rhodian introduces the first system of insurance, insuring owners against the flight of their slaves for an annual premium of 8 percent.[1] The concept of risk management, fundamental in technical analysis, can be traced back to early insurance practices. Rhodes
Augustan age (c. 43 B.C.-18 A.D.) Economic Prosperity Roman commerce reaches its height, characterized by market-oriented agricultural production and an increase in the demand for luxuries.[1] Rome
Early Roman Empire Price Records Although scarce, evidence of price records from ancient Rome suggests a market economy where prices contain information about the supply of and demand for goods.[1] Rome
Early Roman Empire Seasonal Patterns Price data exhibits seasonal patterns, leading to arbitrage opportunities based on these patterns. Recognizing and capitalizing on seasonal trends would become a key strategy in technical analysis.[1] Rome
868 Background The world's first known printed book, a Buddhist sutra, is produced in China.[1] China
1150-1300 Golden Age of Champagne Fairs The Champagne fairs in France flourish, marking a "Golden Age" of trade fairs that become central to European commerce. Held in the Champagne region, these fairs attract merchants from across Europe, facilitating the exchange of textiles, leather, spices, and other goods sold by weight. Beyond tangible goods, the fairs are also hubs for financial transactions, including currency exchange and credit arrangements, laying early groundwork for modern financial practices. The Champagne fairs' well-organized schedules and secure environments foster a network of reliable trade, which contribute to economic growth and the spread of commercial techniques that would later influence the development of technical analysis in market transactions.[1] France
1202 Publication Liber Abaci by Leonardo Fibonacci is published, introducing Arabic numbers and commercial arithmetic methods.[1] Fibonacci numbers would later become foundational in technical analysis, particularly in Fibonacci retracements and extensions used to predict price levels. Italy (Pisa)
1278 Publication The compilation of the Memoria de tucte le mercantile in Italy marks a significant advancement in the realm of business literature. This instructional manual provides merchants with guidelines on various commercial practices, including trade techniques, financial management, and market strategies. Notably, it includes an astrological appendix, reflecting the contemporary belief in astrology’s influence on market conditions and decision-making. The integration of astrological insights with practical business advice illustrates the era's attempt to blend empirical and mystical approaches to commerce. This manual not only serves as a resource for merchants but also contributes to the evolving understanding of market dynamics, influencing future practices in trade and technical analysis.[1][10] Italy
13th century Merchants Sophisticated traveling merchants and sedentary merchants conduct international trade and communicate through land mail, with an example being Dantini of Prato.[1] Various regions
1300s Origins of Trading The Merchants of Venice begin trading debts, acting similarly to modern brokers.[11]
1409 Establishment The bourse (stock exchange) is established in Bruges, Belgium, becoming a key financial institution for traders. Originating as a meeting place for merchants and bankers, the Bruges Bourse facilitates trading activities, including commodities and financial instruments, shaping early financial markets in Europe.[1] Belgium
1500s Political Change Hideyoshi Toyotomi ends the currency economy in Japan, leading merchants to develop sophisticated methods, such as technical analysis, to trade and analyze markets.[1] Japan
1531 Establishment The First Exchange opens in Antwerp, dealing in promissory notes and bonds.[11] Belgium
1540 Technical Trading System Christopher Kurz develops a technical trading system based on astrology in Antwerp.[1] Kurz's system, despite its basis in astrology, lays a foundation for technical analysis by attempting to predict market movements using historical data and cycles. Belgium
1575 Settlement Lodovico Benedito Bonbisi settles bills of exchange with Francisco de la Pressa and heirs at Medina del Campo.[1] Bills of exchange and settlement practices introduce financial instruments that would later evolve into futures and options, integral to technical analysis strategies. Lyons, France
1585 Price Quotations The Amsterdam Bourse, one of the world’s first formal stock exchanges, produces the earliest recorded list of price quotations. This list provides traders with standardized information on the prices of various goods and commodities, fostering transparency and enabling more informed trading decisions. By documenting price changes over time, the Amsterdam Bourse would play a pivotal role in the evolution of market analysis, as traders begin to recognize patterns and trends within these recorded prices.[1] Netherlands
Late 1500s Political Unification Japan is unified under a centralized feudal system by generals Nobunaga Oda, Hideyoshi Toyotomi, and Ieyasu Tokugawa, leading to the development of rice exchanges.[1] Japan
1602 Company Shares Shares of the East India Company begin trading on the Amsterdam Bourse.[1] Netherlands
1600s Formation of Companies The East India Companies are established, introducing modern joint-stock companies.[11]
1609 Institution The Bank of Amsterdam is founded, enhancing capital availability and economic growth.[1] Netherlands
1621 Company Shares and Settlement Shares of the West India Company begin trading on the Amsterdam Bourse. Commodities trading, such as that facilitated by the West India Company, introduces price volatility and trading patterns observed in technical analysis.[1] In the same year, Dutch colonists establish New Amsterdam in New Netherlands, laying the groundwork for what would become a major financial center.[1] Netherlands
1633 - 1637 Tulip Mania The famous tulip mania occurs in Amsterdam, highlighting the impact of speculative trading.[1] Tulip mania exemplifies market psychology and speculative bubbles, studied in behavioral finance and technical analysis. Netherlands
1653 Infrastructure Peter Stuyvesant builds a 1,340-foot-long and 12-foot-high wooden stockade, known as Wall Street. Wall Street's establishment as a physical location for trade activities becomes central to the financial markets where technical analysis would later be applied.[1]
1660 Revolution Europe experiences societal and scientific revolutions, setting the stage for modern capitalism.[1] Societal changes and the rise of capitalism provides the economic environment for the development of technical analysis methodologies.
1663 Legal Change The Grain Act marks a pivotal legal change in England by legalizing forestalling and regrating practices, which encourages speculative activities in grain trading. Forestalling allows merchants to purchase goods before they reach the market, while regrating permits them to buy and resell goods at a profit within the same market. This legislation aims to stabilize grain prices and ensure a steady supply, fostering a more competitive trading environment. By facilitating speculative practices, the Grain Act not only stimulates free trade but also lays the groundwork for more sophisticated market strategies.[1] England
1664 Conquest British invade New Amsterdam and rename it New York, continuing business as usual under favorable terms. Maintaining the continuity of business practices help solidify New York's role as a financial hub.[1]
1675 Publication French merchant Jacques Savary publishes Le Parfait Négociant.[1] France
1698 Demolition The wooden wall on Wall Street is torn down. The removal of physical barriers symbolizes the growing openness and expansion of the financial markets.[1]
Late 1600s Institutionalization The rice market at Yodoya’s yard is institutionalized as the Dojima Rice Exchange in Osaka.[1] Japan
1700s Financial Innovation The South Sea Company is founded, marking a significant development in trading practices.[11]
1755 Publication Homma's The Fountain of Gold advises to "buy when the share price declines and sell when it rises."[1]
1776 Publication Adam Smith's visionary work sets the competitive spirit completely free to thrive.[1]
1776 Background The United States wins its independence, several years after the rice market in Osaka opened.[1] United States
1792 Publication Wu Zhongfu compiles The Merchant’s Guide from earlier manuals Essentials for Travelers and Essentials for Tradesmen.[1] China
1830s Price Charts The emergence of price charts for visualizing the market becomes prevalent in France, England, and Bavaria.[1] France, England, Bavaria
1863 Publication Shareholder’s Circular and Guardian advocates that participating in financial markets is in one’s personal and reproductive self-interest.[1]
1870 Social Commentary Lefevre suggests that investing can promote social harmony by uniting the bourgeoisie and working classes into a single "investing class."[1]
1885 Publication Dow presents the "market discounts everything" principle and discusses the rotation of bullishness and bearishness in his editorials.[1]
17th century Early Form Traders in the Dutch East India Company plot changes in stock prices, marking the beginning of technical analysis.[2] Netherlands
1680 Coffeehouse Trading Brokers and investors conduct business in London coffee shops, like Jonathan's Coffee House.[11]
1688 Publication Joseph de la Vega, an Amsterdam-based merchant, publishes Confusion de Confusiones. This seminal work offers a comprehensive documentation of the Dutch financial markets of the time, providing early insights into market behavior and patterns. De la Vega describes various speculative techniques and methods for predicting stock price movements, making it one of the earliest known works on technical analysis. His observations and methodologies lay the groundwork for future developments in the field of financial analysis and trading.[3][2][6][1] Netherlands
1710 Introduction of Futures Contracts Rice coupons or futures contracts are introduced at the Dojima Rice Exchange.[1] Japan
18th century Candlestick chart patterns developed In Edo-period Japan, Munehisa Homma, a rice trader, develops candlestick chart patterns and produces writings like The Fountain of Gold—The Three Monkey Record of Money.[4] Japan
18th century Development Japanese traders use technical analysis, pioneered by Munehisa Homma, creating Sakata charts (candlestick charts).[5] Japan
1710 Establishment of Rice Futures Market Osaka, Japan, establishes a rice futures market where coupons representing future delivery of rice are traded. This market also employs early technical analysis techniques, such as candlestick charting.[6][3] Japan
1724-1803 Birth and Development of Candlestick Charting Munehisa Homma, born in 1724 in the port city of Shonai-Sakata, Japan, is considered the father of Japanese technical analysis. Throughout his life, he develops candlestick charting, a foundational technique in technical analysis.[1][7] Japan
1730 Rice futures trading begins Rice futures start trading on the Dōjima Rice Exchange in Japan.[4] Japan
1752 Market New York’s first formal market is organized by merchants for dealings in slaves and cornmeal.[1] United States
1755 Publication and Development of Candlestick Charting Munehisa Homma, a Japanese rice merchant, writes The Fountain of Gold—The Three Monkey Record of Money. This work documents early Japanese technical analysis, introduces candlestick charting, and explores market psychology and human emotion in trading.[1][6][3] Homma would die in 1803, leaving behind a legacy in technical analysis.[1] Japan
1790 Establishment The Philadelphia Stock Exchange became the first stock exchange in the United States.[11]
1790 Exchange Philadelphia becomes the home of the first real stock exchange in the USA.[1] United States
1792 Formation The New York Stock Exchange (NYSE) is established under a buttonwood tree on Wall Street, quickly rising in prominence.[11]
Early 18th century Candlestick Charting Homma Munehisa develops candlestick patterns to predict rice prices in Japan.[6] Japan
1817 Formation The New York Stock Exchange (NYSE) was established, becoming a major player in stock trading.[11]
Mid-19th century Social Attitude Shift Social attitudes toward trading soften, making it socially acceptable and desirable to invest.[1]
Mid-19th century Conceptual Development Financial speculation is thought of as one of the great principles of wealth production, situated above work, capital, and trade.[1]
1884 Development of Dow Theory Charles Dow, co-founder of The Wall Street Journal, studies stock market data and creates an average of the daily closing prices of 11 important stocks. This leads to the development of Dow Theory, which correlates market patterns with the Dow Jones Industrial Average, laying the foundation for modern technical analysis. Dow believes stock price movements reflect the composite knowledge of all market participants and can predict future business conditions.[6][7][8][2][4][5][9] United States
1897 Introduction of Dow Averages Charles Dow introduces the Dow–Jones Averages, initially comprising two separate averages: one for 20 railroad stocks and another for 12 industrial stocks. These averages were designed to represent the general market trend and have since evolved, with the Industrial Average expanded to 30 stocks in 1928. Over time, stocks included in these averages have been adjusted to remain representative of their respective groups.[9] United States
1902 Dow Theory Expansion and Editorial Charles Dow considers the relationship between volume and price in The Wall Street Journal.[1] After his death, his followers would expand on his ideas and develop chart-based trading strategies.[4] United States
Early 20th century Dow Theory Expansion William Hamilton refines Dow Theory, explaining market trends using a metaphor of ocean waves.[6][8] United States
Early 20th century Use of ticker tape Traders like Jesse Livermore use ticker tape to track market prices and anticipate market movements.[4] United States
1916 Expansion of Industrial Average The Dow–Jones Industrial Average is expanded from 12 to 20 stocks, reflecting the growth and diversification of the industrial sector.[9] United States
1922 Publication William Peter Hamilton publishes "The Stock Market Barometer," formalizing and expanding on Dow's ideas. This work lays the groundwork for the Dow Theory, emphasizing the predictive power of stock market averages.[9] United States
1920s Development William P. Hamilton applies Dow Theory, forecasting market trends and identifying short-term waves.[5] United States
1928 Further Expansion of Industrial Average The Dow–Jones Industrial Average is further expanded to 30 stocks, a composition that continues to date.[9] United States
1929 Introduction of Utility Average All public utility companies are removed from the Industrial Average, and a new Utility Average of 20 issues is established.[9] United States
1920s-1930s Development of Technical Analysis Richard W. Schabacker, a former financial editor of Forbes Magazine, builds on the work of Charles Dow and William Peter Hamilton by systematizing methods and identifying significant technical patterns in individual stock charts. His influential books, including "Stock Market Theory and Practice," "Technical Market Analysis," and "Stock Market Profits," become foundational texts in the field.[7][9] United States
1930s Development and Practical Application Edson Gould uses technical analysis to predict Dow Jones Index movements, gaining widespread recognition. Over the following decades, he would make accurate market predictions and develop indicators like the Senti-Meter, earning a reputation as a market wizard.[5][8] United States
1930 Richard W. Schabacker publishes Stock Market Theory and Practice, a comprehensive guide on stock market fundamentals, technical analysis, and risk management. Covering market history, trends, charting, and investment strategies, this book would remain a key text in understanding market intricacies and making informed investment decisions.[12]
1932 Publication and Development Robert Rhea publishes The Dow Theory, providing further insight into Dow's work. In the following years, he would enhance the Dow Theory and popularize technical analysis through newsletters in his series Dow Theory Comments.[6][8][5] United States
1935 Market Prediction Ralph Nelson Elliott predicts the market bottom using Elliott Wave Theory.[6][8] United States
1938 Gartley’s annotations H.M. Gartley publishes intricate annotated charts to educate readers on common features of trends.[4] United States
1938 Adjustment of Utility Average The number of stocks in the Utility Average is reduced from 20 to 15 to better represent the sector.[9] United States
1942 Collaboration Robert D. Edwards joins his brother-in-law Richard Schabacker in furthering technical analysis research. Edwards continues Schabacker's work after his death, contributing to the development and refinement of technical analysis techniques.[9] United States
1940s Founding of the first hedge fund Alfred Winslow Jones founds the first hedge fund and advocates surfing the market’s mood swings.[4] United States
1946 Elliott Wave Theory Elliott publishes his book with Charles J. Collins, officially introducing the Elliott Wave Theory.[6] United States
1948 Publication John Magee, along with Robert D. Edwards, publishes Technical Analysis of Stock Trends, establishing comprehensive charting methods and defining chart patterns and technical indicators for trading. This work consolidates and advances technical analysis methods, making the process more scientific and precise, and becomes a definitive authority in the field.[8][5][9][7] United States
1949 Futures Inc founded Richard Donchian founds Futures Inc, the first public managed futures fund, pioneering diversified trend-following strategies.[4] United States
1951 Retirement Robert D. Edwards retires from his work as a stock analyst. John Magee continues research independently and later as Chief Technical Analyst at an investment counseling firm, focusing on discovering new technical devices.[9] United States
Late 1951 Development John Magee initiates the Delta Studies, an extension and refinement of the technical method. These studies introduce new concepts that enhance the ability to interpret and predict market situations, proving successful in practical market operations.[9] United States
Mid-20th century Advancement Introduction of computer technology allows for the development of complex mathematical models and indicators like MACD, RSI, and Bollinger Bands.[2] United States
1971 Technological Advancement Nasdaq was formed as the first electronic stock market, revolutionizing trading.[11]
1970s and 1980s Popularization Chart patterns such as head and shoulders, double tops and bottoms, and triangles, along with Fibonacci retracements, become popular.[2] United States
1984 Championship Robert Prechter wins the U.S. Trading Championship using Elliott Wave strategy, re-introducing the theory to the public.[6] United States
1980s Introduction of empirical rigor Michael Adam, David Harding, and Martin Lueck use computers to analyze historical price data, introducing empirical rigor to technical analysis.[4] United States
1990s Popularization of candlestick charts in the US Steve Nison popularizes Japanese candlestick charts in the United States with a series of articles and books.[4] United States
Digital age Accessibility Online trading platforms and sophisticated charting software make technical analysis accessible to retail traders. Machine learning and AI open new frontiers in the field.[2] Global
Recent years Real-time Computation The values of the Dow–Jones Averages are now computed in real time and are available over the Internet. These hourly and daily figures are published in The Wall Street Journal and other financial media, reflecting the modern necessity for real-time data in options and futures trading.[9] Global
2024 Market Capitalization As of January 2024, the market capitalization of the NYSE and Nasdaq was $25.56 trillion and $23.41 trillion, respectively.[11]


Year Event type Details
17th century Origins of Technical Analysis Dutch traders in the Dutch East India Company began plotting stock prices onto paper, creating rudimentary charts.[13]
1688 Early Concepts Joseph de la Vega published "Confusion of Confusions," discussing irrational investor behavior and price movement patterns.[13]
18th century Development of Candlestick Charting Homma Munehisa developed candlestick charting in Japan, representing opening, closing, high, and low prices.[13]
Late 19th century Foundations of Modern Analysis Charles Dow published editorials that led to the formulation of Dow Theory, outlining market trends.[13]
Mid-20th century Technological Advancements Introduction of computer technology enabled complex mathematical models and indicators like MACD and RSI.[13]
1970s-1980s Popularization of Chart Patterns Chart patterns like head and shoulders and Fibonacci retracements gained prominence; Efficient Market Hypothesis emerged.[13]
Digital Age Accessibility of Analysis Online trading platforms and charting software democratized access to technical analysis tools for retail traders.[13]
Present Integration of AI and Machine Learning Advanced technologies are enhancing technical analysis, allowing for more sophisticated market predictions.[13]



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  • The Evolution of Technical Analysis: Financial Prediction from Babylonian Tablets to Bloomberg Terminals, by Andrew W. Lo and Jasmina Hasanhodzic.

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References

  1. ↑ 1.00 1.01 1.02 1.03 1.04 1.05 1.06 1.07 1.08 1.09 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 1.25 1.26 1.27 1.28 1.29 1.30 1.31 1.32 1.33 1.34 1.35 1.36 1.37 1.38 1.39 1.40 1.41 1.42 1.43 1.44 1.45 1.46 1.47 1.48 1.49 1.50 1.51 1.52 1.53 1.54 1.55 1.56 1.57 1.58 1.59 1.60 1.61 1.62 1.63 1.64 1.65 1.66 1.67 1.68 1.69 1.70 1.71 1.72 1.73 1.74 1.75 1.76 1.77 1.78 1.79 1.80 1.81 1.82 1.83 Andrew W. Lo, Jasmina Hasanhodzic (2011). The Evolution of Technical Analysis. Bloomberg Press. 
  2. ↑ 2.0 2.1 2.2 2.3 2.4 2.5 2.6 2.7 "A Short History of Technical Analysis". Composer. Retrieved 2024-06-26. 
  3. ↑ 3.0 3.1 3.2 3.3 3.4 "An Introduction to Technical Analysis". Tradimo. Retrieved 2024-06-26. 
  4. ↑ 4.00 4.01 4.02 4.03 4.04 4.05 4.06 4.07 4.08 4.09 4.10 4.11 4.12 4.13 "Reading Between the Lines". Winton. Retrieved 2024-06-26. 
  5. ↑ 5.0 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 "Technical Analysis". Earn2Trade. Retrieved 2024-06-26. 
  6. ↑ 6.00 6.01 6.02 6.03 6.04 6.05 6.06 6.07 6.08 6.09 6.10 6.11 6.12 "The History of Technical Analysis". Quantified Strategies. Retrieved 2024-06-26. 
  7. ↑ 7.0 7.1 7.2 7.3 7.4 7.5 "Technical Analysis". HowTheMarketWorks. Retrieved 2024-06-26. 
  8. ↑ 8.0 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 "Pioneers of Technical Analysis". Investopedia. Retrieved 2024-06-26. 
  9. ↑ 9.00 9.01 9.02 9.03 9.04 9.05 9.06 9.07 9.08 9.09 9.10 9.11 9.12 9.13 9.14 Robert D. Edwards, John Magee, W.H.C. Bassetti (2001). Technical Analysis of Stock Trends, Eighth Edition (Hardcover). Taylor & Francis. p. 709. ISBN 9781574442922. 
  10. ↑ "From Medieval Corporatism to Civic Humanism: Merchant and Guild Culture in Fourteenth and Fifteenth Century Florence". Academia.edu. Retrieved 29 September 2024. 
  11. ↑ 11.0 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 11.9 "Stock Exchange History". Investopedia. Retrieved 29 September 2024. 
  12. ↑ George Edward Roberts (1927). Stock Market Theory and Practice. McGraw-Hill. Retrieved 26 June 2024. 
  13. ↑ 13.0 13.1 13.2 13.3 13.4 13.5 13.6 13.7 "The History of Technical Analysis". Quantified Strategies. Retrieved 29 September 2024. 
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