A chart review of past events if you throw Enough TA at it can be viewed to make you conclude you should be able to anticipate direction, problem being that since you (nor I) do not really know everything (see: sum knowledge below) about the stock, nor what event may occur next to invalidate your colorful nice plot, you may as well be tossing chicken bones each morning prior to 9:30am.
Stock price action is redirected on a moment-by-moment basis on the current sum knowledge of All the market players and their actions, or their inaction, at any given moment in time. A chart analysis (of PAST EVENTS) is quite lovely to look at, fun to do, and is rendered obsolete the moment the market moves again in real time based on all the current reasons that are known NOW, that were not known just a moment prior (in real time), that the chart history (since chart trading is looking backwards to 'look' forward) does not include (simply because it IS based on history/trades of the Past Events). Charting or 'tossing the bones' analysis can be fun if you are not a chart-aholic.
Just because we as Traders/Investors will never know all that sum knowledge at each given moment a price action changes (We may not know, but that does not mean it does not exist to cause an action/reaction), some of us (not I) still like to chart the past events with TA indicators to try to foretell the near future. That's the problem with the future; it changes constantly based on the next set of current events/news/actions that have yet to occur...
Stock Charting / TA / Chicken Bones Analysis / Tea Leaves
IMO: My viewpoint above refers to my own perspective on trusting any stock chart past time frame, combined with one’s various selections of their preferred TA plotting.
uBuy until uSell - uWink, uWait, uWin! - Netman
I base my trading decisions on my own DD, research, evaluation, constant re-evaluation, insight and information. Everyone should do their own DD, and constantly evaluate their own conclusions IMO.
