09-25-2021, 03:12 AM
People analyzing charts - what am I missing?
<!-- SC_OFF --><div class="md"><p>I see all the time on stocktwits etc. people who post pictures of charts with a bunch of lines, red and green candles and throwing around words like “lost support at $x, pain coming” and “gapping up now after hard dip”, “breaking past support line” and yada yada yada.</p> <p>What is all this? I don’t really understand the terminology. What is this talk about support? Why are they treating charts like an entity when all it is telling you is what price people bought and sold for at a given time? It’s not like the market says “let’s draw a line at $x and not let it dip below”. The word support means absolutely nothing at all in this context. It doesn’t matter how many charts you look at, you cannot predict what the price will be the next day by analyzing trajectory, volume, drawing lines and throwing around words like “support at $x” so what is it with these people? Do they really think they can predict the future?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/giagermin"> /u/giagermin </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/putqqn/people_analyzing_charts_what_am_i_missing/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/putqqn/people_analyzing_charts_what_am_i_missing/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p>I see all the time on stocktwits etc. people who post pictures of charts with a bunch of lines, red and green candles and throwing around words like “lost support at $x, pain coming” and “gapping up now after hard dip”, “breaking past support line” and yada yada yada.</p> <p>What is all this? I don’t really understand the terminology. What is this talk about support? Why are they treating charts like an entity when all it is telling you is what price people bought and sold for at a given time? It’s not like the market says “let’s draw a line at $x and not let it dip below”. The word support means absolutely nothing at all in this context. It doesn’t matter how many charts you look at, you cannot predict what the price will be the next day by analyzing trajectory, volume, drawing lines and throwing around words like “support at $x” so what is it with these people? Do they really think they can predict the future?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/giagermin"> /u/giagermin </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/putqqn/people_analyzing_charts_what_am_i_missing/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/putqqn/people_analyzing_charts_what_am_i_missing/">[comments]</a></span>Kind Regards R