charting technique, page-2

G'day bendigo,

I know that your comment was made slightly "tongue in cheek". However, what you say extends into one of the concerns that I have long had with charting.

My theory is that the human brain is a very clever little beasty and is very good at "pattern finding". This is easily evidenced by our ability to see images of naked girls in cloud patterns (well, you see what you see .. I'll stick to what I see).

This leads me to believe that if we look at a chart, particularly if we are pre-disposed to a particular view, we will manage to see "support lines", "trend lines" etc that suit our opinion.

I am sure, of course, that there are some who can separate these brain functions but I think it takes a lot of discipline.

A good test is to take a chart, remove the labels and turn it upside down. Then get your friend to give their opinion.