by Michael Kahn
It is easy to get caught up in the day-to-day wiggles in the markets. It also does not help that advertisements for trading systems constantly bombard investors on all media. No, I am not going to tell my dinner date to sit tight while I hedge my positions in Hong Kong.
That is why it is important to step back every once in a while to look at the big picture. The simplicity of long-term price charts, unadorned with fancy indicators, circles and arrows and a paragraph on the back of each one. (My apologies to Arlo Guthrie.)
Technical analysts believe that price is the only indictor that matters. They enjoy looking at derivatives such as momentum and moving averages. They will also take a quick peek at volume and sentiment and while these factors can refine the analysis none of them overrules what the price chart says.