I do not disagree with you at all. I'm not a chart worshiper. Actually I consider myself a somewhat holistic investigator of charting, fundamentals with financials and the illusive sentimentalists. LOL
I have traded exclusively on the charts in some sectors of the markets. While fun, not as lucrative nor as exciting as the microcaps. I mean, this is the sport of champions.
Charts are based on history. From my experience there are very few indicators that will alert an investor to movement before it happens. Sometimes a flat MACD will give an early warning, and that is kind of like reading tea leaves and there is a chance. If you line up indicators with a straight edge on breakouts you will find examples of this.
The true value in the charts is in the history they show quite accurately. And most traders, particularly those with electronic alert systems, feed their trading agendas with these signals. This is where the value lies. Not in the chart, but rather in the bulk of traders sentiments driven by the charting indicators.
These indicators often times lead into press releases and the anticipation of financial reporting. If the financial reports are suspected as being good or great, the PPS will start its rise before the release. The charting indicators will turn North and within a day or two it becomes somewhat obvious as to what is happening. As more traders notice the trending a surge may take place, depending on the sentiments and hopes. Very emotional thing not based on established fact.
Anyhow, this is some of what I look for and everyone has their own style and agenda. Some folks are purist technical swing traders. That's a pretty easy way to make a living in the markets, particularly in the midcap and blue chip range. But this PINKY and OTCBB market is wild West at the rodeo and requires a combination of crystal ball analysis along with technicals and fundamentals to be a survivor.
PINKY positions are all about the odds. Put a grand down on five for example. Loose on three, small take on one, and the fifth goes to the moon and you make money. Of course this depends on a trader's ability to choose good positions with a chance of surviving in lieu of picking all losers. That's the tough part. DUH, DUH! ("DD")
Mental stop loss and an ability to sit on a tenuous position is important in reducing those losses. Often times when one of these dumps we get caught up with the difficulty of selling, or worse yet, bound up in our faith that we were so correct in our assessment and can not believe our eyes and it will come back. Arggghhh! The kiss of death!
Of course always in my opinion......... but I share it for what it may be worth to anyone. BLOOD SPORT and survivors in the game love it.
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