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FAQ Page 4 - Question 39

Q: What's your view on charts, can they make you money?

A: The whole financial world seems to be obsessed with charts these days. Literally millions of eyeballs are looking at the charts almost on a tick by tick basis. Personally I think charts are very useful but unlike most people I prefer to look at them over longer periods of time. What in effect happens today or tomorrow doesn't really worry me, whereas most people seem to be forecasting the long term trend of a single days action. If the market is up today then the long term trend is up, but if the market falls the following day the bear market is back with a vengeance!

What I'm doing at present is the opposite to most people, I pay attention far more to the weekly chart than the daily. The main reason for this though is because most of my trades last for many weeks if not months. The other thing that I would recommend is to keep your charting very simple indeed, forget about all the new technical tools out there and concentrate on the shape of the chart. Take a quick look at any chart and see what your first impressions are, if the chart looks bullish then try and do more buying than selling and as simple as this technique is, it works.

The IncredibleCharts.com website has some excellent free charting lessons - Click Here