[Master Thread] Charting, page-87

Something like that ...called support & resistance zones / supply and demand & trendlines in its basic form.

If you can't break a prev resistance zone to continue an upward trend (supply comes in), you generally consolidate or come back to a prev supp zone (somewhere the mkt saw value in the SP for level the Co is at) to try hold there, consolidate & try again once potential supply has been absorbed.

Left field FA catalysts will always override TA imo however, people sceptical of charting try imagine it as some crystal ball. Need to look left, need to look at how the chart (read mkt) reacted to various previous and similar events.

Must remember, a chart is really in essence, a visual representation of what buyers / sellers do in alignment to events. Human nature being what it is, quite often follows similar behaviours (herd mentality) so looking left and looking at what the mkt did in lead ups to known or expected FA events or reactions to positive or negative events as they happen can help find supp / resist areas that a current SP needs to navigate.

TA & FA are inevitably intertwined.