Will most people reach same conclusions by charts reading ?

Discussion in 'Technical Analysis' started by jacksmith, Feb 25, 2009.

  1. Will most people reach same conclusions by charts reading ?

    Since most people are looking at the same indicators, do you think that most people will reach the same conclusions (buy/sell decisions) by analyzing charts ?

    In other words, what can cause people to reach different conclusions given we all are looking at the same data (price movement / volume, etc).
     
  2. Lucrum

    Lucrum

    NO!

    Several reasons, but perception, lack of objectivity and preconceived notions play a major role.
     
  3. denali

    denali

    Many reasons, but to name a few:

    - trading different timeframes
    - looking at different indicators
    - different interpretations of patterns
    - contextual understanding
    - different experience levels with tape reading, interpreting price action, and pattern recognition
    - emotional control & state
    - hedging vs speculation
    - errors

    Two traders can take opposing trades and both be right.
     
  4. Take an oversold indication, for instance.

    What it means?, Will market reboud to overbought, or just become more oversold?

    I just came to one conclussion:
    Charts are worthless
     
  5. On some trading days, most will reach the same conclusion.

    On other trading days, most will not reach the same conclusion.

    Mark
     
  6. ===================
    Jacks;
    It depends, many times no & yes.

    a] Mainly on time frame; & some will not study 1 year chart

    b] Experienced trader/new trader

    c] Counter trend or trend

    e] Even when looking on same data,[1 year chart] which many times would not even happen; you could , easily get a bull or bear trend on silver & gold/related.

    s] And sometimes the data is not similiar at all;
    sand states real estate frequently differs from TN. ..................
    :cool:
     
  7. No.

    The better question is why anyone would think the answer could be "yes".
     
  8. What makes you think that most people are looking at indicators at all?
     
  9. I think the answer is no since people use different indicators and their interpretation are different. Some people like bottom fishing while others wait for confirmation before jump in.
     
  10. Redneck

    Redneck

    IMHO

    No - and why - because....

    Most use charts and lose

    A few use charts and win


    But maybe the chart isn't the difference - I wonder
     
    #10     Mar 1, 2009