I have recently started following a number of technical chartists on Twitter. I realise that chartists have a bit of a bad reputation in the academic world – almost as though they’re the horoscope peddlers of stock prediction.
But my suspicion is: now that so much trade is algorithmic (85%+), in almost every type of market (stocks, bonds, futures, commodities, currencies), market behaviour is losing a degree of randomness. Which makes technical charting more accurate.
Also, a good chartist is an empirical observer of market behaviour – and their understanding of how money flows around the world just blows my mind.
Here is an infographic on reading charts that I like:
Just, you know, in case you’re interested.