Over years of studying the stock market, two very distinct schools of thought have emerged, two radically different methods for arriving at answers to the trader's question of what and when. In street parlance, one of these is commonly called fundamental or statistical analysis, and the other technical. The technical term in its application to the stock market has acquired a special meaning. It refers to the study of the action of the market itself as opposed to the study of the goods that the market deals with. Technical analysis is the science that records, usually in graphical form, the actual history of trading (price changes, volumes and transactions, etc.) in a given security or "averages" and then deduces from that represented history the probable future trend. According to Park and Irwin (2007) recent studies indicate that technical trading strategies consistently produce economic profits in a range of speculative markets at least until the early 1990s. Out of a total of 95 recent studies, 56 studies found positive results regarding technical trading strategies, 20 studies had negative results, and 19 studies indicated mixed results. In pioneering work, Smidt (1965b) studies amateur traders in US commodity futures markets and finds that more than half of the respondents use charts exclusively or moderately to identify trends. Charts are the technical analyst's working tools and have been developed in a multitude of shapes and styles to graphically represent almost everything that happens in the market, as well as to plot the shape derived from an "index". From a more recent study, Billingsley and Chance (1996) found that approximately 60% of commodity trading advisors (CTAs) do a lot of or and...... half of the paper... the market quote contains already in itself everything that can be known about the future and in this sense it has devalued future contingencies as far as humanly possible”. There are also negative empirical findings in several pioneering and widely cited studies of stock market technical analysis, such as Fama and Blume (1966), Jensen and Benington (1970), and Van Horne and Parker (1967, 1968). Sullivan et al (1999, 2003) and Olson (2004) are among the recent studies that have shown that technical trading rules generate positive economic profits before the 1990s, but profits are declining significantly or disappearing altogether with the passage of time and with the advent of globalization. These results could be explained by temporary market inefficiencies that occurred in periods prior to the 1990s. According to Park and Irwin, 2007, there are two possible explanations for temporary inefficiencies