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Daily Archives: September 21, 2009

The Longer the Base the Longer the Race

September 21, 2009
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The Longer the Base the Longer the Race

Now back to the market.  As most of you know, I use charts on a daily basis, but I hesitate to call myself a technician.  Technicians, or technical analysts, rely heavily–sometimes exclusively–on charts to find stocks to buy and tell them when to sell.  And they usually look for certain patterns–triangles, coils, pennants, ascending structures, etc.–to foretell where a stock or market is heading. To me, those types of patterns aren’t overly reliable; sometimes they work, and sometimes they don’t.  Instead of trying to predict the future, I prefer to use charts to help with simple supply-and-demand analysis–I look...

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