CHAPTER 6THE IMPORTANCE OFCHARTS—A VISUALCONFLUENCE OF PRICE,TIME, AND EMOTION

Why Charts?

Which conveys more information about a specific oak tree, a picture of the tree or a 1,000-word description? Now suppose that you have just five seconds to assimilate the information.

According to an old Chinese proverb, a picture is worth 1,000 words. To which I add: A chart is worth 1,000 numbers. A chart takes a jumble of numbers and makes them workable, and your mind makes visual connections that are not apparent in a list of numbers.

Remember, the primary number to chart is stock price, which is in constant flux. Each price is set where the supply and demand lines meet, where willing buyers meet willing sellers. Each time a buyer and a seller meet, ...

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