Trend Following Is Objective, But Many Forms of Technical Analysis Are Subjective

If it sounds too good to be true, it is. Consider this excerpt pulled from “Winner Take All” by William R. Gallacher:

There is little point in exploring the Elliott Wave Theory because it is not a theory at all, but rather the banal observation that a price chart comprises a series of peaks and troughs. Depending on the time scale you use, there can be as many peaks and troughs as you care to imagine. Elliott thought that a bull market consisted of five peaks interrupted by five troughs. Trouble is, no two people can agree on what constitutes a peak or a trough, so there are as many interpretations as there are chartists.

Hmmm…