In the technical analysis seminar, Master Bonner and Danny taught us that technical analysis is subjective. Given a chart, each technician would interpret a chart differently.
See this as an example:
Today Dec 15, Phisix not only dipped, but dropped a lot and with suprising volume. In an email exchange from the group that i am subscribed to, one of the members hinted that things look bleak for the local stock market as the index range today dropped way beyond a support line.
I did look at the supplied chart, lo and behold it did cross a valid support line. The "chicken little" in me already called for an all out SELL!!!! And ofcourse emotions are flaring (stock trading is really such an emotional stress, mind you), I have started to compute in my mind the big loss I would be incurring ( why a big loss, kasi I didn't follow my cutloss prices, lagot ako, hahatawin ako ng dos por dos ni master bonner =p ).
But after some time another email was sent by another member, and according to him, the market though bleak , is still on the upside, that its just a major pull down, pero things are still on the upside. Ofcourse with his version of the chart, though it broke down of a support, the index is still intact and on the upside when viewing it from a larger picture
Such a perfect example that charts can be interpreted differently. =) . Medyo na calma ako...hehehehehe.
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