"Charts, from what I understood of them, are only based on some mathematical calculation just the same as the ones that punters are using while going to the casino"
I think there is an important distinction here - the punters at the casino can actually calculate their probability of a win. The game and the odds are well-defined.
I think many Chartists *think* they are employing some fancy mathematical analysis, but usually they aren't. The fact that some chartists are employing Fibonacci numbers in their charts, is a total joke. This just demonstrates to me that there are people out there who think mathematics is magic.
Most HC TAs are simply employing different flavours of moving averages of the stock price or the volatility. This isn't anything sophisticated. What they *should* be doing is what the analysts working in investment banks and hedge funds are doing: back-testing the performance of their TA / trading strategies against historical data and then providing a summary of the % of the time that their trading method actually returned a profit. Unfortunately, they would probably need to learn some basic programming to do this, which is why we never see these sorts of TA posts.
Anyone can draw lines on a OHLC plot. It'd be nice to see somebody go the extra mile.
PLV Price at posting:
19.8¢ Sentiment: Buy Disclosure: Held
