Chartism is for dummies

Now that were well into the credit crunch (I guess nostalgia lovers will be storing away memories of this so that they can tell their grandchildren. “Yes, I remember when there were banks.” or be able to answer “What did you do in the great crunch daddy?”)

Well I was looking at the BBC’s Archive section on their website and they have a series of programmes about british banking etc. first broadcast in 1964. (Back in the days when the world was black and white.)

One of the episodes was called  ‘The Golden Eggheads’ and amongst other things is about ‘Chartists.’
Now Wikipedia describes them as:-

‘A chartist (also known as a technical trader or technical analyst) is one who utilizes charts to assess patterns of activity that might be helpful in making future predictions. Most commonly, chartists use technical analysis in the financial world to evaluate financial securities. For example, a chartist may plot past values of stock prices in an attempt to denote a trend from which he or she might infer future stock prices. The chartist’s philosophy is that “history repeats itself.” ‘

On this programme (about 7:00 in) they were being asked and were attempting to explain what they did and how successful they were at it.
Unfortunately they failed at both. Either they didn’t want to tell and give away their secrets of alchemy or they just didn’t know. At one point during the explanation it seems to dawn on them that there is nothing to know, they don’t really know what they’re on about and all they do is look at graphs and well, sort of guess!

Anyway I don’t think this chart-porn is all that difficult to decipher. You only have to look at this graph (produced during the recent “I’ve been here before” financial déjà vu) that I found during my study of the subject …

chartist

Enough said really.

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