Do you remember the old E.F. Hutton campaign? When E.F. Hutton talked people listened! The same goes for stock chart reading. Charts talk if we will only listen. Shall we bend our ear and listen to what they have to say?
Charts tell us where strong price support and resistance is located; where significant moving averages are signaling the beginning or end of a possible trend; where a well known chart pattern may be forming…or failing; where buyers have said yes and sellers have said no.
Charts tell us when we should get out with a profit before greed takes over and kills a perfectly good trade or when the plan for profit just is not on the agenda today, so best to exit gracefully.
Charts tell us it is time for the trend traders to make their money and the day traders to take a nap…or it is time for the bears to hibernate and the running of the bulls to begin.
Charts tell us to brush aside our ego and accept what is instead of demanding what we want.
Charts tell us that anything can happen and often does.
Charts tell us that rational thought and logical thinking are anathema in the stock market so best that we leave our degrees on the thermostat where they belong.
Charts tell us that they are arrogant, always right, and as cold as ice. They do not care about you or your analysis; only the price at the end of the day, which is right whether you want to believe it or not.
Charts tell us a lot about ourselves. The charts reflect back to us what is inside of us…if we will only listen.
When the chart talks, successful traders listen.
Thanks to Dave over at http://stumptownblogger.typepad.com/stumptownblogger/ for the pic. Check out his site.
