Humms, I think your kind of missing the boat with charting. Its not just random numbers that are said to be support levels. Think of it as organised chaos. Its a way for the more experienced traders to kind of be in sync with each or "in the know". Its a code more or less, that the majority use.
Now if you dont know this "code" (chart patterns, sometimes fib lines and yes to a point candle stick reversal signs) then you will be the one left behind. Think of it as a secret language amoungst those in the know. Its a simple way of organising chaos IMO.
Also chart patterns are a snap shot of all the trading thats taken place over the entire life of the stock. Totally transperent - they dont lie. If your stock has a dirty little secret that you dont know about, the chart will tell the story straight away. If a stock is in a descedending parralel channel, that stock is obvioulsy being sold off. You have to ask, why is it being sold off? Because the market doesnt like it even if you do. The market is always right.
For a stock to climb to new high after new high, there has to be something fundamentally good about it and you can bet that there is at least one or two or more "big boys" in there who REALLY know what the score is with this stock, be it someone who knows the directors or investors with a tonne of money who know more about investing than you and I probably ever will and institutions looking to put their hard earned in.
