RE: Rising channel5 Feb 2021 08:45
I agree with Tony.
There is also another point to consider. There are traders and investors who DO look at charts, and if the technical outlook begins to look positive, then it is more likely for money to be invested - increasing our SP.
There is a similar conversation about the effectiveness of using Fibonacci retracement and extension numbers. Do they reflect human nature or does human nature reflect them? There is enough widespread use of Fibonacci numbers for either or both to be true.
If you're not into technical analysis, then this is not for you but it is a useful additional arsenal and for me, confirmation of where price is likely to go. For instance, after the previous low of 75p, price increased to 101 then dropped back to 81p, with a combination of counting Elliot Waves and using some Fibonacci numbers, I could see that price was likely to bounce off.
Of course, I could have miscounted the Elliot Waves, but the point is using some technical analysis, I was able to buy more stock with increased confidence.