The scientific method and technical analysis

This document discusses the scientific method and its application to technical analysis. It explains that the scientific method involves making observations, developing hypotheses to explain those observations, making predictions based on the hypotheses, testing those predictions through further observation or experimentation, and drawing conclusions about the validity of the hypotheses based on how well they fit with the observations. The document then outlines the five stages of applying the scientific method to technical analysis: observation, hypothesis, prediction, verification, and conclusion. It provides examples of how each stage would work in practice when analyzing financial market data.