Stocks Lesson 17

Chartist Stuff – There are people (Chartists) who say ignore the fundamentals of a stock. Face it! The market is irrational and the only thing that really matters is the direction of a stock and there are really only two directions – up and down. The Chartists believe in looking at the charts to see what is going on. I think there is some credibility to be found in this approach.

The indicators that Chartists use are part of apackage referred to as Technical Analysis (TA). TA uses indcators. The three most common indicators are: Stochastics, RSI and MACD.