chartists are share psychics nothin more!!, page-20

Guys ... get it right!

A chart is merely a VISUAL form of TECHNICAL ANAYSIS! .... something that ALL OF YOU use everyday, whether you know it or not!

Before you buy you;
1] check the DEPTH
2] check the VWAP to decide a good buy price
3] see how much volume has gone though ... ie: liquidity
4] check to see whether it has risen too high ...dont want to buy at the top
5] check up on Hotcopper to see how many posters & how much public interest there is in the stock
etc etc etc.

Would anyone in his right mind trade shares WITHOUT checking the above? OF COURSE NOT!!! Well all the above is just technical analysis (TA) by any other name!

Now, the "charting" of TA is merely putting of ALL THE ABOVE and more, instantly into a visual chart. It takes study and effort to develop, read, and understand those charts, the patterns, and other technical indicators - something that many are not prepared to put the time into. So they choose to remain ignorant, and TA charting remains a "mystery" to them, something they dont understand. Then instead of admitting their ignorance, they do what ignorant people have done for centuries. In the past chartists & technical analysts would have been hailed as witches & burned at the stake - today all they can do is vilify that, and those, they dont understand.

To deny the power and value of technical analysis, and to insult the tens of thousands of investors and analysts that successfully use it, is utterly ludicrous!

PS:
Having said the above, there are individuals that incorrectly view TA & charting as a means of "fore-telling the future" ... something that it is not meant to do! They get mixed up with the study of "Patterns" and "Indicators" - which is an analysis of certain events that historically have lead to a certain result. So we might see a certain "PATTERN" in a chart = past studies might show that this "Pattern" forms in a chart because of certain reasons, and in many cases causes the SP to react in a certain way.
This is not infallible. It is like saying the "PATTERN" of drink-driving & speed results in accidents. Many times it does, but not always! However it is a reliable indicator!

Hence when a good chartist sees certain studied patterns and indicators, he will put that stock on his watchlist as a potential buy, OR if negative, as a stock to consider SELLING if he already holds.

For those with their head in the sand, this post will do nothing. But for any who are interested in the value of TA, hopefully this post encourages you to look a bit deeper into it.