“Technician” vs “Chartist”
These are two terms that are often used interchangeably: Technician and Chartist. But many times it’s wrong to do so. You see, all chartists are technicians by definition, but not all technicians are chartists.
What is a chart?
For me, a chart is just a visual representation of the changes in equilibrium between supply and demand.
That’s all it is.
We don’t have to pretend it’s something that it’s not.
How the chartist interprets the data on the charts is where the skill and experience comes in. The chart alone won’t do much for you, in the same way that a carpenter is way better at using his tools than I could ever be.
What is Technical Analysis?
To me, Technical Analysis is the study of the behavior of the market, and therefore market participants, as opposed to the goods and the services in which a particular market deals.
We refer to the latter as “Fundamental Analysis”, which we don’t find helpful at all. [Read more…]