What is the use of charts in analysis of specific stock price movements in market?
Charts are an integral part of technical analysis for both price and volume data. However, this technical analysis is based on historical data and therefore would give you a visual of what has already occured with regard to the price and volume movement or action of the stock under study. It enables the technical analyst to guesstimate as regards the future expected price and volume action with respect to the stock under study. You may realize that here we are talking in terms of the probability of the occurance of an event; like a price up move or down move. Chart analysis is sometimes also refered to as the “windmills of the mind”. However, they have as much use to the analyst as has fundamental analysis.
