technical analysis and charting, page-17

Technical analysis is the interpretation of a graphical presentatation of statistical data. The graphical representation of the data sample is the price chart.The sample is the price of the security.This price represents the average opinion of the large nuber of people making buy and sell decisions.Technical analysis is more about people than numbers.The behaviour of people is reflected in the chart and,from the pictures that are formed,future outcomes may be ascertained with some degree of probability.Such outcomes are not perfect,but provided that the outcomes occur more than half of the time the trader has a trading edge,together with money management and risk management rules,to gain more on successful trades than is lost on unsuccessful trades.The result over a reasonable period of time is a trading profit-the object of the exersise. "this discussion on technical analysis is included largely to dispel the perception including clark kent and friends that technical analysis is a close relation to VOODOO or some other occult science. It is like the study of weather largely scientific and partly artistic.Like weather forecasting the results are not always perfect but the results are good enough to remain dry more frequently than getting wet"...... Last 4 weeks the xao has put on 5% i have put on 22% it seems to work for me lol russell