Were you aware that there are professional stock analysts that make their living by just utilizing charts? They don’t bother with the fundamentals of a company or even the business the company is in. All they care about is the chart and where it looks like it is going.
As an example, if you are trying to learn out how to trade stocks online, most experts would point you in the direction of finding as much as you can about the companies you are interested in. To do that you can go online and you will discover all sorts of stock websites that have more investment advice than you can imagine. Some of these sites are free and some are paid but most will give you an evaluation of each mining stock based on fundamentals. That is the way most stock brokers and advisers choose which stocks to make money with.
You’ll find a small segment of stock pickers though, who do all their evaluation by simply taking a look at a chart of a company. To do this they examine various time intervals and they draw lines through the graphs in all sorts of ways. Their aim is to discover a stock who’s chart reveals that it might be breaking out to the upside which signifies that it is a good time to buy the stock. They are constantly looking for the best stocks to buy now by hoping to find stocks that have charts they feel show that an upward trend is imminent.
People who pick stocks in this manner spend most of their time analyzing charts and they don’t care about any other aspect of the companies they are looking at. This kind of analysis can be done by various computer programs which have made this method of stock picking much easier than it was before computers came on the scene. Whether picking stocks by just using charts really works is up for debate though, as most stock brokers would never rely on only a chart to make a stock recommendation.