Love your post .... was having this exact discussion yesterday...

Love your post .... was having this exact discussion yesterday with a trader for UBS

"All you techies out there with your self fulfilling prophetic charts must remember that a chart can only tell you where you've been not where you are going. "

These were almost my words exactly!! Charts are about the psychology of the trader and that's it. Give the same chart to 5 traders and they'll give you 5 very different answers. Give five analysts the same PL and BS and they'll give you the same key ratios and financial health of a company.

Whoever first dreamt up charting must have been rubbing his hands with glee ...... the flock is a cometh.
Get enough people looking at a chart the way you want them to see it and it becomes a very powerful 'herd mentality' tool.

In saying this, I prefer to look financial health/ fundamentals first, then by all means use the charts to (or get someone else to help me!! lol) help pick your entry point. Or even manufacture one by playing with the herd's ;) now this is where it gets interesting ........