Let me suggest to you why I think charts:
-can be so revealing,
-their link to emotion, and
-why newspapers are so misleading to the average punter.
For those who still have April's AFR's, go back to Thursday 4th April
page 25 market wrap section headline "war premium fuels rise in oil and
gold". A bullish headline, but top of the oil price chart, April 4th.
see attached, Oil Daily - PDF
AFR April 12 page 36 market wrap heading "oil, gold may tire of
conflict", bearish headline, but the market low for the month. At
halfway point I might add.
Classic newspaper headlines reporting the emotion of the players; but
the market maths often clearly states the opposite is about to occur.
You will see this time and again, matching headline news to your charts;
and is how one day one of those light bulbs went off in my head. An aha
With practice, you (should be able to) get to the stage of being able to
tell where price is on a chart, just by reading headlines. What's more,
the headlines usually come up on dates you should be aware of,
pertaining to the market or stock you are trading. Another indicator
that can help you know what to do at the right time.
Now have a look at the weekly chart, Oil Weekly - PDF
It is telling us this; any break of those tops and you have an oil bull
market. World events will then start to reflect those breaks, indeed
will reveal why the market was bullish. (Tops haven't broken yet) The
market will know first, not the other way around. I am watching oil prices.
You should have a list of oil stocks on our market, the ones which have
the best looking charts, and at which levels they are buyable.