Saturday, November 22, 2025

Is Charting technique Perfect?

IF the world is perfect LINEAR, everything can be predicted to the dot! Since the truth is world exist in both LINEAR and NON-LINEAR making each and every different technique will NOT be perfectly predictable.

BUT if we look what is obvious from the trend chart behavior in the past, repeating and present, we will have UP - SIDEWAY - DOWN. Assuming a cycle is LINEAR = 50% of the time and NON-LINEAR = 50%. That brings us to the next question HOW DO WE MANAGE THE NON-LINEAR state? If we can develop something to manage the half of NON-LINEAR, we bring the manageable "predictable" reliability to 75% of a cycle. 

Any system that give 75% reliability should minimum. If we move to the next step is to manage the 25% uncertainty. I believe this should be the 2 price trend reversal state ie start phase and the end phase.

IF charting is perfect, all chart practitioners should be rich. In reality there are failures. Question is why?

I would say, charting should give a decent practitioner a minimum 75-80% reliability as long one mishandle and abuse this method.

Chart main advantage over the classical financial technique is chart technique has the ability to detect trend change, cycle movement and time the trend.

THE KEY IS TO FIND THE BASE TIME FRAME to TRACK THE MAIN TREND CYCLE. 

Is it Quarterly, Monthly chart, Weekly, Daily or 4h chart?   

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