Hi Geepeem'Predict' is completely the wrong way to think about...

Hi Geepeem

'Predict' is completely the wrong way to think about it [IMO]

All a chart does is lay out, in a visual format, the behaviour of buyers and sellers over some given period of time.

A trend line is sometimes drawn when that behaviour appears to have set in. Support and resistance lines are sometimes drawn when buyers and sellers have repeatedly made the same decisions at various price-points.

This is usually correlated to volume to also gauge how much actual money has changed hands when those decisions have been made.

To quote a 'Sufi proverb' ... "If it happens once it will never happen again, if it happens twice it will happen thrice"

When I chart the momentum, all I am really doing is recording the current 'mood' of the price action. The hope is always that the 'mood' lasts long enough to benefit from it. But, as you must know, things can change in an afternoon.

Charts can not and do not predict anything. Brains, good judgement and luck sometimes works.