Part 2: Basic Principles for Conducting Unbiased Technical Analysis

The first part of this series can be found here.

Establish Foundational Principles

Now that various bias types have been introduced, it is important to establish foundational principles that can strengthen an analyst’s ability to minimize these distortions in their work. 

Objectivity requires analyzing data with a neutral mindset, devoid of preconceptions, and only forming opinions after thorough investigation. 

Robustness involves using multiple diverse measures instead of relying on a limited set of indicators more susceptible to random variations alone. 

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Control Variables to Eliminate Bias

Control variables help isolate the key relationship from potential “lurking” biases by stratifying or controlling for confounding factors.

Emphasis on replicable methodologies through explicitly documenting all steps allows others to evaluate findings and catch potential biases overlooked due to proximity.

Neutrality aims for impartiality towards perceived “good” or “bad” markets by regarding all data objectively as sets of opportunities independent of existing views.

Find the Simplest Logical Explanation

Parsimony looks for the simplest logical explanations rather than complexity which invites skepticism and overfitting bias.

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Transparency about all analytical work prevents results bias through selective disclosure of only favorable outcomes.

Utilize Stonksmaster to Enhance Your Comprehensive Analysis Technique

Integrating Stonksmaster's daily estimated price ranges into your financial assessments can provide a unique viewpoint on support and resistance levels that surpass conventional technical analysis. Our Expected Price Range, determined by the momentum and the latest ten daily closes' data, modifies itself to predict today's trading price range.

Keep in mind, that this Expected Price Range is not a substitute for investment advice or a suggestion for security transactions. Instead, it functions as an essential complementary instrument that augments your existing technical or fundamental methodologies. By juxtaposing the support and resistance levels with the Expected Price Range, you can efficiently double-check your analysis and dispel any lurking biases.

Before making any investment choices, it's crucial to consult with your financial advisor to ensure that your strategies are in line with your financial objectives and risk appetite. Enhance your investment decision-making with Stonksmaster, your guide to a comprehensive, diverse approach to market trends and opportunity analysis.

By making these principles outlined above, core to one’s process, technical analysis integrity can be strengthened regardless of experience level. Part 3 will examine inherent biases embedded within analytical constructs themselves as well as practical mitigation techniques.