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As a follower of such graphs for about fifty years, I appreciate how useful they can be, but how hard it may be to interpret them. And occasionally the chart will indicate a significant price-change, even without any corresponding news in the markets. In such cases it's so hard to act on such a strong yet unsubstantiated hint that usually one doesn't. But in the following days some news might `break´ that sends the stock suddenly higher or lower. Could it be that the share price-chart will sometimes foretell that news?
That may be so. But I have noticed that the semi-arithmetical chart provides a clearer view of historically low prices than the semi-logarithmic, which seems to show better the higher ones
As a follower of such graphs for about fifty years, I appreciate how useful they can be, but how hard it may be to interpret them. And occasionally the chart will indicate a significant price-change, even without any corresponding news in the markets. In such cases it's so hard to act on such a strong yet unsubstantiated hint that usually one doesn't. But in the following days some news might `break´ that sends the stock suddenly higher or lower. Could it be that the share price-chart will sometimes foretell that news?
There is a rather notable school of thought in technical analysis which says that PRICE tells you everything you ever need to know about the market.
That may sound reductionist. However, I have reason to believe it may not be far from the truth. Successful investing entails you keep your eye on price more than anything else.
As a follower of such graphs for about fifty years, I appreciate how useful they can be, but how hard it may be to interpret them. And occasionally the chart will indicate a significant price-change, even without any corresponding news in the markets. In such cases it's so hard to act on such a strong yet unsubstantiated hint that usually one doesn't. But in the following days some news might `break´ that sends the stock suddenly higher or lower. Could it be that the share price-chart will sometimes foretell that news?
sometimes chart do tell, like if news leaked or what not.
sometimes they don't....some people expect a good earnings release, have a run up, and then the company gives poor guidance and the stock tanks.
As a follower of such graphs for about fifty years, I appreciate how useful they can be, but how hard it may be to interpret them. And occasionally the chart will indicate a significant price-change, even without any corresponding news in the markets. In such cases it's so hard to act on such a strong yet unsubstantiated hint that usually one doesn't. But in the following days some news might `break´ that sends the stock suddenly higher or lower. Could it be that the share price-chart will sometimes foretell that news?
You have to assume that in some cases the market is manipulated. As a simple traders we cannot know everything that is going behind the scene. We may only assume.
No doubt, the chart may give good provide some points. As for me, Volatility and volume usually one of the best indication of actions. If you see a strong drop in price, without previously increase in volatility and there were no strong volume surges to the price upside and there are no news - there is the possibility of reversal back up. However, if you see a stock traded on high volume after strong move up and if after that you see steady increase in volatility during side-way action it would tell that this stock is highly overbought, many investors already dropped this stocks' shares during high volume trading, the rest of investors are quite nervous (increase in volatility) and most likely this stock will reverse down.
This thing is referred as technical analysis and has recently been very popular with brokers who time thier entry through it in the market!
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