A bluffers' guide to charting
For a long time charting has been a dirty word.
For some sceptics basing investment decisions on little ticks on a graph, trend lines or anonymous kinks on a curve is about as trustworthy as consulting the ancient runes or using astrology.
In recent years, however, one has been able to say the word charting in polite company.
Sorry, I'll just get this off my chest: 'Charting, charting, charting. Thanks. 'Flip, buttplug, charting.' The tourettes is clearing up.
And just as people are starting to accept my ailment, they are also adopting the C-word.
Brokers, institutions and in particular hedge funds have come to rely on technical analysis.
So much so that is seems charting is now a hip word. Indeed, chartists have emerged from the closet and technical analysis has joined the mainstream.
Some of the jargon is impossible to decipher and does have the air of Russell Grant about it.
Instead of the moon rising in Uranus, you've have trend lines, resistance levels and golden crosses.
But it seems in the right hands, charts can an provide eerily good pointer towards whether you should be buying or selling stock.
So be free, be happy and enjoy charting.
In this section:
- Charting - the basics
- Charting - about trendlines
- Charting - about moving averages
- Charting - about head and shoulders
- Some charting terms
- Learn more about charting