humbolt -- Yes! I am 90% in agreement with you -- you understand it well! I reserve the last 10% to add that people use charts to plan entry and exit points. So, it's not about advertising your pricepoints, but finding where the majority of people think they are and then pouncing on them once confirmed.
Like, for example, NVMG showed big support at .0075 last week where both the 50ma and 200ma were. However, trading still dipped below that for a bit to .0065. Once it rebounded back up, all the outlier traders knew that that .007 support was indeed true. So, in sum, it's also a synchronizing of minds!
I charted GOOG a while back and found that most of my predictions came to fruition! I may have gotten lucky here and there, but it was obvious to me that the big boys use this stuff too. If they do, we all should too. That's my opinion.
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