Charting...just my two cents.
I've bought and read three books on charting. Chart your way to profits by Tim Knight, Technical analysis for beginners by Andrew Elder and Japanese charting techniques by someone else. Read them cover to cover. All books are now at the op sho. Tim Knight, additionally, now basically writes about animals - check out his bibliography.
This is my own opinion, but charting is, nowadays, utter BS. It's people drawing lines on graphs and expecting up votes when it goes their way, but by and large they have no idea. I block chart analysts.
The reason is bots. Perhaps in the past when price movements were specifically human, some real analysis could be drawn from formations and candlestick doji. The whole concept of charting and candlesticks was the trade of rice in early Japan. It was supply and demand. But not anymore. There are computers hard-wired into the ASX server that contain institutional bots using algorithms that know when trades are coming through so they can either ride or obfuscate it. This means it's no longer supply and demand, it's, in effect a form of laundering or profiteering.
Commsec has a platform that allows you to at least see more. But, like in documentaries on the big short, you'll never get the inside information on who's buying and how much, like proper trading houses do, paying exorbitant subscriptions.
The ASX has become a casino and as a retail investor that previously did well ten years ago, the current landscape is frightening and incredibly disappointing. Good companies get shorted to oblivion, positive announcements see massive drops. How often have you read a report and then scratched your head 'why didn't this go up?'. One word, bots.
So screw your support lines and fibonacci, use MACD and RSI alone. If you like the company buy. If you think they will eventually get their ass in gear and go from Explorer to producer and make money, chuck dough in.
But don't trust charts as it's now utter bollocks. Thanks for reading.
Expand
(20min delay)