Chartist nonsense18 Jul 2020 15:23
Confirmational bias, when a lot of "professionals" look at a chart the inbuilt bias is already there, they then add to the bias by buying or selling, which in turn then increases the bias. The whole fraudulent position is only broken when news arrives that undermines the whole basis pf the bias. Look back at some pf the biggest losets and weeks earlier the charts were extolling their virtues. Charts will only
1. Confirm the growth of a sound company
2. Confirm the demise of a failing compan
3. Can NEVER predict a change in fundamentals and or sentimemt.
Its a bit like Economists they can all explain why thigs happened after the event their poqers of prediction are exactly 50% correct 50% wrong, and even when they are wrong they can explain why their methodology was right but things conspired to undermine the predictions.
Why is it that no one van tell you where the market is going, v shaped recovery, tick, sqare root, and theres the small matter of inflation, hyper inflation, deflation, it seems the only thing economist can agree on is interest rates are staying low, so expect mortgage rayes of 8% by this time next year. As you can guess its still raining in St Davids I would hate to have to do this for a living