Technical, page-410

I'll play.

look up DOW theory. The concept underpinning it is basically that people make somewhat emotionally driven investment decisions that are mappable and thus becone somewhat predictable. Not everyone does, but the herd does. You can see this in sometimes clear patterns on a stock chart (support/resistance lines, channels etc). It then gives you a probability based on past experience. Eg lynas hit 5.25 support line 6 times meaning people were watching this line and the herd had decided that this was a point at which they would start buying again. By the second time it hit that line and bounced you would know it was a probable support line. By looking at the volume seeking into the line or coming off it would give an indication of the strength of sentiment on either side.

it isn't voodoo or anything ( though i personally think things like fibonacci are bunkum). It is essentially a take on human behaviours.