Chart, page-398

@Jubbo70 charts do provide insights into the rational or irrational behaviour of market participants. How many times have you seen a chart of some spec stock that has risen exponentially to prices way beyond any realistic valuation - and subsequently fall back hard to somewhere near where they started? They are classic examples of stocks running ahead of realistic valuations due to euphoria or similar emotional investor response. Have a look at what happened with the medical marijuana sector recently - that behaviour can be seen quite clearly in their charts.

But as the old saying goes the market can stay irrational longer than you can stay solvent which is why it's so important to look for signals you learn to trust as reliable confirmation that there is actually a change in trend. There are many ways to obtain such confirmation from charts, none of them 100% reliable, so you have to learn by research and/or experience which is the most reliable for you and the way you trade.

Cheers, Sharks