chart action, page-7

Hi DW2,

Charts definitely do not control prices. Their purpose is to help humans understand price movements, by analyzing non-fundamental information and using pattern recognition, and to allow intermediate predictions of price movements with a higher than normal probability of accuracy.

I agree with you that they have absolutely nothing to do with the intrinsic value of a company. That is not their purpose. Their purpose is to record the reaction of the market participants to (mostly publicly) available information, which relates to the intrinsic value of the company. They are intended to assist in predicting probable reactions of groups of participants which might affect the "traded price", as distinct from the target price. That is one of the reasons why banks and major trading houses pay so much for IT systems based on charts and pattern recognition.

Of course, they could well all be wrong........

Perhaps we should suggest alternative methods of managing their trading business to Goldman-Sachs etc. They dont seem to be doing all that well at the moment.