How often do we hear one person ask another, “So what are the charts telling you?”, or “What does that chart say?”. Think about that. Charts don’t actually say anything at all. They’re charts. Charts don’t speak. So why do so many people want to know what the charts are saying?
Technical analysis is the study of the behavior of the market and market participants. The most important tool that we have as technicians is price. Movements in the price of an asset represent the changes in equilibrium between supply and demand. It just so happens that the best way to visualize these changes in equilibrium is in chart form. This is why many technicians prefer to be chartists. It is not necessary for a technician to use a chart [Read more…]