ABSTRACT
The technician using the various tools of technical analysis, Dow Theory, Point-and-Figure charts, oscillators, scale order systems, and monthly, weekly, and daily charts is in the minority. The cold attempt to analyze a situation on the basis of the market record alone does not appeal to many people. Technical analysis leaves out the warmth and human interest of the boardroom, the trading room, the fascinating rumors of fat extra dividends to come, the whispered information on new patents, and the thrilling study of the quarterly earnings reports. It is the influence of all these rumors, facts, and statistics that causes people to buy and sell their stocks. It is their actions that build the familiar chart patterns. The chapter shows that the charts to follow the old patterns; the presumption is very strong that markets have followed these patterns long before there were any technicians to chart them.
