They say, “A picture is worth a thousand words.” Technical analysis consists of studying past market data, which is usually constructed in chart form, by tracking price movement. Technical analysis helps us to determine when to buy and sell a security. Investor psychology has a tendency to repeat itself. By studying the charts, we can find patterns that repeat throughout history, which helps improves our odds of having a successful trade. Total Investment Management has been using technical analysis for over 10 years with the portfolios we manage. While the fundamental data tends to be backward looking, the technicals reflect the current state of the markets. Technical analysis is a great way to control risk. Our long term bear market signals are technically derived and allow us to get defensive before the economists tell us we are in a recession.