Once Charts were Considered Craziness by Many
Then Computers Released Them
Charts' are cool but the tape is hot. It is hot because it is moving, even when prices are identical. It is instinctive, we watch anything that moves even as do all organisms.
There is nothing like a chart to bring everything into perspective. A good chart will show where price congestion is, the support and résistance areas.
The best charts are candlestick charts, used in Japan more than 500 years now. They show the opening and closing as well as the high and low price and whether it was up or down at the close and the open. Shown is a Stockcharts.com chart of Apple. These are the best charts I've ever used.
Charts developed, from my understanding, in the U.S. are called point and figure charts. The Xs are up prices and Os are down prices but only if they have made at least a three point change. P&Fs are also good, like candles, showing congestion and support/resistance areas.
The worst thing one can do, in my mind, is to use decimals as in dollars, instead of charts. Fractions are best and are being brought back I've been told. The reason fractions are best is that they take the awareness of money (meaning fear and greed) out of price movements.
