Looking forward to an answer from W3hunter and anyone else who wants to put forward their opinions.
But I would say, with my limited knowledge, that charts do exactly what you are asking..
I've said before that I don't like charting and I can be a stubborn son of a.. Sometimes..
If you are investing long term, which is a good strategy, if you have chosen good companies with solid management, then charting doesn't matter much.
But the arena I've always played in, has been the spec side of things and I now know, that the knowledge of charting is paramount.
The whole Japanese Doji candle system (the only one I like), is based around the measurements of human emotion.
It's a bit like Buddhism though, in that it can turn into a religion, instead of its original purpose.
Buddha taught philosophy and meditation to achieve higher states, he is not someone to be prayed to.
(mayne not the best analogy and all my opinion on that subject)
You don't need to follow the chart's, but you will lose a lot of money, or opportunities to make money if you don't.
A good strategy, which I recently thought of (this is just my opinion) is to have 3 parcels of shares in a company (if you like them and can see they have a future)
Parcel 1 you don't touch.
Patcel 2 you trade, based on chart information.
Parcel 3 you trade on news, based on chart exit points or Trailing Sell algos.
If you try and just "guess" your entry and exit points, you can still do well, but you will get closer to the ideal exits by using the chart indicators.
Charts can show changing sentiment and increases in volume and price change can show good or bad news, possibly coming.
Then you need to account for chart manipulation, which also takes into account these things and can lead you up or down the wrong path..
There is so much to know, understand and be aware of, that's its better not to be in the stock market at all!
Property is a much better pursuit of wealth, in my experience.
Since I'm already here though, I really need to learn more about charting!
All, all my opinion.
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