RE: Charts25 Mar 2021 11:43
Sdon, I think the "problem" with charting is that it is mostly misunderstood. The zealots will claim it can predict what will happen (I don't), this leads quite rightly to the obvious flaw of dramatic, unexpected news breaking and the "chart" goes out the window. Plus the "I'm right, your wrong" type of posts often lead to unreasonable claims on both sides.
The fact is fundamental analysis can't accommodate dramatic, unexpected news breaking either, so both approaches have their limitations.
Both approaches easily can suffer from the viewers bias. (If you "want" the SP to rise, its easy to see that in any chart, and likewise make the case from a fundamental view point too. and vive versa).
The key is not to do that of course, but that is far easier said then done. Taking emotion out of the thought process is the single most important lesson to learn when stock picking and then when to buy and sell whatever tack you take.
All a chart will do (even when news has broken), will show the parameters, in terms of price, of where the mass of people will buy or sell. Given that crowds are easily manipulated and/or therefore predictable, can lead to an insight into the most "probably" next movement of the price.
But always, its each to his own and anyone who finds a way that works for them should stick with it until it no longer works, whatever the approach.