Hey Andres,what is your opinion on the weekly (200) moving...

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DrGuidz

116 Posts.

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29/07/22

13:36

Post #: 62809849
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Originally posted by andres: ↑

Thx Moguns - totally agree, there is absolutely no doubt that past behaviour influences future behaviour and patterns. Charting is just visualising the patterns that develop over time. The major stock houses and institutions have departments full of technical analysts so either they are all deluded or a few amateurs are uneducated. The argument of "fundamentals" and inherent value as the be all and end all often plays second fiddle to the prevailing wave of sentiment (be that sector/macro/micro) I have been charting for over 20 years and it is an extremely useful tool when used mindfully.

Charts are not a crystal ball but they can point towards probabilities. For example, if you look up head and shoulder patterns, they have an 85% chance of completion. Double tops/bottoms also have a very high probability of unfolding technically. (They are blueprints of optimism and disappointment) These probabilities have been studied on real data across the bourses (especially the DOW) for decades. They are cycles of sentiment and humans tend to repeat their behaviours. Some of this is also attributed to self fulfilling factors as well as TA is a lot more commonly used by traders and investors than many think.

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Hey Andres,

what is your opinion on the weekly (200) moving average strength of support. Seems to be holding it up nicely over the past week or two.

cheers

IHL Price at posting: 20.3¢ Sentiment: Hold Disclosure: Held
2 Upvote

0 Great analysis

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