Timeline of technical analysis

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This is a timeline of technical analysis.

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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]
Digital Age Accessibility of Analysis Online trading platforms and charting software democratized access to technical analysis tools for retail traders.[10]
Present Integration of AI and Machine Learning Advanced technologies are enhancing technical analysis, allowing for more sophisticated market predictions.[10]

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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 advance 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 of Akkad 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 kingdom of Lydia, located in what is now western Turkey, introduces the first known coins, a major innovation in the history of trade. Made of electrum, a natural alloy of gold and silver, these coins are stamped with official symbols, certifying their weight and value. This development revolutionizes commerce by replacing barter with a standardized medium of exchange, making transactions more efficient and reliable. The introduction of coinage in Lydia facilitates wider trade networks and contributes to economic growth, establishing a foundational element for modern financial systems.[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]
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. 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]
9th century Background The world's first known printed book, a Buddhist sutra, is produced in China.[1] China
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
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]
17th century Early Form Traders in the Dutch East India Company plot changes in stock prices, marking the beginning of technical analysis.[2] Netherlands
17th century Early Form Dutch traders in the Dutch East India Company began plotting stock prices onto paper, creating rudimentary charts.[10]
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
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 of Candlestick Charting Homma Munehisa developed candlestick charting in Japan, representing opening, closing, high, and low prices.[10]
18th century Development Japanese traders use technical analysis, pioneered by Munehisa Homma, creating Sakata charts (candlestick charts).[5] 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] Towards mid-century, financial speculation is thought of as one of the great principles of wealth production, situated above work, capital, and trade.[1] At the same time, social attitudes toward trading soften, making it socially acceptable and desirable to invest.[1]
Late 19th century Foundations of Modern Analysis Charles Dow publishes editorials that leads to the formulation of Dow Theory, outlining market trends.[10]
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] ]In the 1970s-1980s chart patterns like head and shoulders and Fibonacci retracements gain prominence; Efficient Market Hypothesis emerge.[10]
Mid-20th century Technological Advancements Introduction of computer technology enables complex mathematical models and indicators like MACD and RSI.[10][2]

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
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 Cleomenes of Naucratis, an administrator in the service of Alexander the Great, orchestrates one of history’s earliest recorded instances of market manipulation. By planning a “wheat corner,” he seeks to restrict wheat production in Egypt, thereby reducing supply to drive up prices and exert control over the market. Cleomenes aims to profit by imposing his own prices on this essential commodity, illustrating an early form of speculative trading. This attempt at market control highlights the long-standing practices of speculation and manipulation in financial markets, predating formalized trading systems and laying foundational elements for the eventual development of regulatory and analytical approaches in commerce.[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 During this time, Roman commerce thrives, marking a period of significant economic prosperity. Under Augustus's rule, the Roman Empire experiences increased stability and expansion, which fuels market-oriented agricultural production and a burgeoning demand for luxury goods. Trade networks extend across the empire and beyond, facilitating the exchange of goods such as spices, silks, and precious metals from distant regions. This period sees enhanced infrastructure, including roads and ports, which support the flow of commerce.[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
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][11] Italy
1309 Institution The city of Bruges establishes one of the earliest formal bourses, or financial exchanges, which becomes a central meeting place for traders across Europe. Named after the Van der Beurze family, whose residence hosts these gatherings, the Bruges bourse enables merchants to conduct business, negotiate contracts, and settle payments. This institution marks a shift towards organized financial markets, allowing for more efficient trade of goods, currencies, and securities. The Bruges bourse sets a precedent for similar exchanges in cities like Antwerp and Amsterdam, laying the foundation for modern stock exchanges.[12] Belgium
1300s Origins of Trading The Merchants of Venice begin trading debts, acting similarly to modern brokers.[13]
1531 Establishment The world’s first official stock exchange is established in Antwerp, Belgium, where merchants gather to trade promissory notes, bonds, and other financial instruments. Unlike modern exchanges, this early bourse does not involve trading company stocks; instead, it facilitates transactions in government debt and other financial contracts. The Antwerp exchange introduces a structured marketplace for buyers and sellers, promoting transparency and reliability in financial dealings.[13] 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
1587 Political Change and Unification in Japan Hideyoshi Toyotomi ends the currency economy, prompting merchants to develop sophisticated methods, including technical analysis, to trade and analyze markets. Meanwhile, Japan unifies under a centralized feudal system established by generals Nobunaga Oda, Hideyoshi Toyotomi, and Ieyasu Tokugawa, leading to the development of rice exchanges.[1] Japan
1602 Company Shares Shares of the Dutch East India Company (VOC) begin trading on the Amsterdam Bourse, marking a milestone as the first publicly traded company. This event introduces the concept of joint-stock ownership, allowing investors to buy and sell shares in the company and share in its profits. The Amsterdam Bourse thus becomes the world's first stock exchange where company shares are actively traded, fostering the development of investment practices and shareholder rights. The VOC’s public listing helps establish a framework for equity trading, which would later drive the evolution of financial markets.[1][13] Netherlands
1609 Institution The Bank of Amsterdam is founded as northern Europe’s first exchange bank. It aims primarily to curb the circulation of debased coins, rather than to guard against private bank failures. By accepting only high-quality coinage, the Wisselbank is able to stabilize the Dutch currency system, maintaining a consistent coinage standard for about 150 years. Its stability and trustworthiness establishes Wisselbank money as a cornerstone of European commerce and finance. Adam Smith, in The Wealth of Nations (1776), would commend the bank’s money for its superior reliability compared to other forms of currency, underscoring its pivotal role in the region’s economy. This institution sets a model for modern banking practices and would influence the development of financial systems across Europe.[14][1][15] 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 Amsterdam experiences the famous tulip mania, one of the earliest recorded speculative bubbles. During this period, tulip bulbs, particularly rare varieties, soar in value as people invest heavily, expecting continuous price increases. At the peak, a single bulb would cost more than a house. However, prices eventually crash, leaving many investors with substantial losses. Tulip Mania serves as a classic example of market psychology and the dynamics of speculative bubbles, illustrating how emotions and herd behavior can drive markets beyond reasonable valuations.[1] Netherlands
1653 Infrastructure Peter Stuyvesant, the Dutch Director-General of New Amsterdam (later New York City), orders the construction of a wooden stockade stretching 1,340 feet in length and 12 feet in height. This defensive barrier, known as Wall Street, is built to protect the settlement from potential attacks by Indigenous tribes and the British. Located along what would later be the famous financial district, Wall Street would evolve over time from a simple fortification into a central hub for trade and commerce.[1] United States
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, a comprehensive guide on mercantile practices, which becomes a foundational work in business education. This manual provides practical advice on various aspects of commerce, including accounting, contracts, insurance, and maritime trade. Savary’s work emphasizes ethical conduct, proper record-keeping, and the importance of understanding market conditions—principles that were instrumental in shaping the emerging field of commerce. Le Parfait Négociant not only serves as an essential resource for merchants but also contributes to the development of systematic business practices, laying early groundwork for modern economy.[1] France
1688 Early Concepts Joseph de la Vega publishes "Confusion of Confusions," discussing irrational investor behavior and price movement patterns.[10]
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
1711 Financial Innovation The South Sea Company is founded in Great Britain, marking a notable advancement in financial innovation and trading practices. Created to consolidate and manage national debt, the company is granted a monopoly on trade with Spanish colonies in South America, despite limited access to these markets. In 1720, the company’s shares would skyrocket in value due to rampant speculation, leading to the infamous South Sea Bubble, which would burst later that year, resulting in substantial financial losses.[16] Despite its eventual collapse and cessation of operations in 1853, the South Sea Company’s story would often be cited as a cautionary tale about speculative bubbles and market manipulation, highlighting the risks inherent in investing and influencing the development of modern financial regulations.[13] Great Britain
1755 Publication Japanese rice trader Munehisa Homma publishes The Fountain of Gold, a seminal work that outlines his trading strategies for the rice markets. Homma’s book introduces the concept of buying when prices decline and selling when they rise, a principle that would remain central to trading strategies. Known as one of the pioneers of technical analysis, Homma also develops candlestick charting techniques to track price movements, which provides insights into market psychology. His work lays the foundation for modern technical analysis tools.[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]
1680 Coffeehouse Trading London coffeehouses such as Jonathan's Coffee House become popular venues for brokers and investors to conduct business, marking an early form of organized securities trading. These coffeehouses serve as informal exchanges where merchants, traders, and financiers gather to discuss market trends, trade shares, and exchange information. Jonathan's Coffee House, in particular, becomes a central hub for trading stocks and commodities, laying the foundation for the establishment of the London Stock Exchange.[13]
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 Futures contract The Dojima Rice Exchange in Osaka, Japan, establishes a rice futures market where rice coupons representing future delivery are traded. This market marks the introduction of futures contracts and employs early technical analysis techniques, such as candlestick charting.[1][6][3][4] Japan
1752 Market New York establishes its first formal market, organized by local merchants for trading slaves and cornmeal. This market is a significant development in the city’s economic history, facilitating structured trade and commerce. The establishment of a formal trading venue not only streamlines transactions but also highlights the importance of agricultural products and the grim reality of the slave trade in the burgeoning economy of colonial America. This market lays the groundwork for New York's evolution into a major commercial hub, influencing the future dynamics of trade and the development of more diverse markets in the region.[1] United States
1755 Publication Japanese rice trader Honma Munehisa publishes The Fountain of Gold, a seminal work that outlines his trading strategies for the rice markets. Homma’s book introduces the concept of buying when prices decline and selling when they rise, a principle that would remain central to trading strategies. Known as one of the pioneers of technical analysis, Homma also develops candlestick charting techniques to track price movements, which provides insights into market psychology. His work lays the foundation for modern technical analysis tools, and his methods would continue to influence traders worldwide, particularly in the interpretation of price patterns and market trends.[1][7][6][3] Japan
1790 Establishment Philadelphia becomes the site of the first formal stock exchange in the United States, known as the Philadelphia Stock Exchange. This exchange is established to facilitate the trading of government securities, including bonds issued to fund the Revolutionary War, and later expanded to include stocks and other securities. It provides a structured platform for buyers and sellers, promoting liquidity and transparency in financial markets. The PHLX sets a precedent for the development of other exchanges across the United States, including the New York Stock Exchange, and plays a crucial role in the early growth of the U.S. financial system.[13][1] United States
1792 Formation The New York Stock Exchange (NYSE) is established under a buttonwood tree on Wall Street, quickly rising in prominence.[13]
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.[17]
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 American accountant Ralph Nelson Elliott makes a significant prediction regarding the stock market's bottom using what would be known as Elliott wave principle. Based on his analysis of market price patterns, Elliott theorizes that markets move in predictable, repeating cycles influenced by collective investor psychology. His prediction of the market bottom that year demonstrates the practical application of his theory, which involves identifying wave patterns within price movements to forecast future trends. Elliott's work provides a foundation for technical analysis, as traders begin to apply wave principles to anticipate market shifts, solidifying his impact on financial forecasting and market analysis techniques.[6][8] United States
1938 Gartley’s annotations H.M. Gartley publishes a series of detailed annotated charts aimed at educating readers on the common features and patterns found in market trends. These charts, presented in his influential book Profits in the Stock Market, analyzes recurring market movements and introduced what would later become known as the “Gartley pattern”—a specific harmonic pattern used to predict price reversals. Gartley’s work emphasized the importance of technical analysis and pattern recognition, offering traders tools to better understand and anticipate market behavior. His contributions lay foundational concepts for future developments in technical analysis and harmonic trading strategies.[4] 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
1946 Elliott Wave Theory Ralph Nelson Elliott publishes Nature’s Law: The Secret of the Universe, his final and most comprehensive work, just two years before his death. This book encapsulates Elliott theories on how social behavior and market movements are interconnected through predictable wave patterns. Elliott argues that these waves, governed by natural laws, reflect human psychology and can be observed across various fields, not just in trading. Nature's Law would remain a pivotal text for those studying market cycles, technical analysis, and the broader implications of Elliott's theory on human behavior.[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 publicly available managed futures fund, marking a pioneering moment in investment strategy and fund management. Donchian’s fund introduces diversified, trend-following strategies, which focus on identifying and capitalizing on long-term market trends across various commodity futures. This approach helps mitigate risk by spreading investments over multiple assets and highlighted the benefits of systematic trading rules. Donchian's work lays the groundwork for modern trend-following techniques and is considered foundational in the development of managed futures funds, significantly influencing the practice of technical analysis and the trading systems used in today’s financial markets.[4] United States
1949 Founding of the first hedge fund Alfred Winslow Jones establishes the first hedge fund, pioneering a new approach to investing by combining both long and short positions to hedge against market fluctuations. Jones's strategy involves leveraging his investments and using tactical short selling to mitigate risk while maximizing returns, which allows him to “surf” the market’s mood swings and capitalize on market inefficiencies. This innovative model sets the foundation for modern hedge funds, influencing future investment strategies focused on risk management and strategic positioning to achieve consistent returns, regardless of market conditions.[18][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
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
1971 Technological Advancement The National Association of Securities Dealers Automated Quotations (Nasdaq) is established as the world’s first electronic stock market. This groundbreaking technological advancement transforms the way stocks are traded by replacing the traditional trading floor with a computerized system, allowing for faster and more efficient trading. Nasdaq introduces automated price quotations for over-the-counter stocks, increasing transparency and accessibility for investors. Its creation marks a significant shift in financial markets, paving the way for electronic trading and influencing the development of other global exchanges. Today, Nasdaq is known as one of the largest stock exchanges in the world.[13] United States
1970s and 1980s Popularization Chart patterns such as head and shoulders, double tops and bottoms, and triangles, along with Fibonacci retracements, become popular.[2][10] 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



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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 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 "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 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. ↑ 10.0 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 "The History of Technical Analysis". Quantified Strategies. Retrieved 29 September 2024. 
  11. ↑ "From Medieval Corporatism to Civic Humanism: Merchant and Guild Culture in Fourteenth and Fifteenth Century Florence". Academia.edu. Retrieved 29 September 2024. 
  12. ↑ "Creation of the First Stock Exchange". Citéco. Retrieved 29 September 2024. 
  13. ↑ 13.0 13.1 13.2 13.3 13.4 13.5 13.6 13.7 "Stock Exchange History". Investopedia. Retrieved 29 September 2024. 
  14. ↑ "Determinants of Corporate Debt Maturity Structure" (PDF). Econstor. Retrieved 29 September 2024. 
  15. ↑ "The Bank of Amsterdam". Beursgeschiedenis. Retrieved 29 September 2024. 
  16. ↑ Cowles, ch. II, IV (esp. pp. 151, 168–169 for share prices)
  17. ↑ George Edward Roberts (1927). Stock Market Theory and Practice. McGraw-Hill. Retrieved 26 June 2024. 
  18. ↑ "About Us". A.W. Jones. Retrieved 29 September 2024. 
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