The writer was reading an analysis of a stock by someone who does technical analysis by charts. In all worlds of information, it is important to look at more than one path to get to the same ending. All paths have their plus and minuses, the chartists look at the trading or momentum of the stock. Charts are available by the minute, hour, day, month and year and one tries to determine what makes the stock move or when the stock moves up and dowm. At the point where the stock tends to move up, is a buying opportunity. The theory being investors act for all types of reasons, and when the stock moves up, investors as a whole have decided there is greater value in the stock. You may hear examples the use of river – rapids of the river indicate a fast upward movement; waterfalls means downwards movement; the lazy stream means not much is happening; and so forth. If you can catch a rapid, money is to be made. After examining the chart, the questions of what’s happening? and why is it happening? are asked.
As a dividend buyer with the objective of holding the stock for the reaccuring dividends, charts are useful and should be looked at but not on a minute, hourly or daily basis, you can check them monthly and that will be good.
There are always more questions than answers, till next time – to raising questions