charting question, page-3

" i dont have much understanding of charting."

There is nothing to understand.
Serious money does not rely on charts.
Charts are useful in telling you what happened in the past, but have no predictive value.

There are basically two main 'technical' strategies.

1) Trend / momentum
2) Mean reversion

Sometimes the market will reward one or the other method (making their proponents think they have discovered the holy grail), but in reality the market will switch from 'trending' to 'mean reverting' with enough unpredictability to make either method useless.

It stands to reason. If charts indicated a clear course of action, we would all be doing the same thing, say selling BHP, but there would be no buyers. Not if the chart says 'sell'.