Less Is More
Sometimes the data presented on a chart can get in the way of the analysis. The wiggles seen even on long-term charts obscure the trends the analyst is trying to find, so a way is needed to cut through the clutter. Computerized filtered rocket science formulas can help, but only if you understand how to apply them. Rather, use the tools at hand to simplify the process to “see the forest” while “navigating through the trees.”
Line Charts
A large percentage of technicians use daily bar charts. They use open, high, low, and close data to summarize what happened during the trading day. Intraday movements can be knee-jerk reactions to news or market conditions rather than illustrative of the actual trend or technical pattern in force ...
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