Another stock market post. Technical traders (or charters) don't look at the fundamentals of an investment, like the earnings per share or even macro economic indicators to understand how a stock will move. Instead, they look at the movements in the market. While many of us might think prices are now low, technicians have the reassurance of fibonacci sequences, relative strength indexes, support levels and other "blackbox" ratios to determine their investments. There are some who blame them for a lot of woe, but they also provide a ray of light when everything else looks glum. Despite some evidence it doesn't work, or at least doesn't work over the long term, the number of true believers in the market mean even true fundamentalists can't ignore their impact. [more inside]
posted by bystander on Oct 28, 2008 - 74 comments