Over the years, chart analysis "evolve" like car technology. The chart analysis objective end result remain the same but the approach changes. The objective of using a car is to move to a destination. Over the years cars has transformed into technology driven.
There are roles that chart analysis can contribute in daily business operations but the truth is many view this approach as some VOODOO black magic. A lot of this problems are attributed to over promising without being able to explain the different methodology.
There are some basic rules or principles when comes to chart analysis. Human nature desiring to read and hear some complexities to a recommendations do not blend well into chart analysis. Sophistication and complexities are deemed to be credible especially when there are mathematics involved. This is why financial economic analysis will be seen more favorable than chart analysis.
The correct way to utilize chart analysis is to make it simple and keep it simple. When one add salt n spices to chart analysis, one might end up with a chart analysis that is too spicy and greasy.
It is not easy for someone who believe Financial Economic Analysis as the truth to accept chart analysis such people encounter chart users to have abused the analysis with predictions which is exactly the financial analysts are doing.
Isn't market about prediction and forecasting? Yes and NO.
Yes, almost everyone wants to know the future but knowing the future NEED not translate into profitability.
The other factor which chart analyst supposedly has advantage over others is trend direction as long keep this simple. This about what happen to the market trend between NOW till the predicted event.
How does one swim, walk, run, jog or fly to the prediction? In my opinion this is the GOLDEN rule of all chart analysis. TO FOLLOW THE TREND. Predictions are meaningless if one FAILS to follow the trend.
The trend is the path to $$$$