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Raj, the charts say a lot. Let me humbly say that is because of charts it avails us all the opportunity to become millionaires. WE have charts in order to make accurate trading decisions. Charts show the rhythmic flow and predictability of the markets.
Look at that previous chart I posted of the USD/CHF. It also shows my short entry on my live account right at the peak of that recent peak. Notice on that chart the higher previous peak and the dip in the middle. That effectively created a 1-2-3 pattern which means when the newest dip is broken, the pair heads much lower.
The chart I posted for this post is the weekly on my demo account. Notice price hitting the bottom of the weekly cloud. The cloud is a measure of the market's equilibrium. When price has drifted so far under the cloud, it is diverged from its total equilibrium. When price action enters the cloud, it has hit ultimate equilibrium.
After drifting so far from the cloud, and then coming all the way back up, price action is tired, and it hit equilibrium, gives up, and heads back.
Notice the blue line, which is called the tenken. That will be touched. That level is .8502 and current price is .8812. By taking that one simple trade with only one lot nets circa $3,100 on that one trade. There are gems that arise like this constantly.
Also, please notice, I have told you what will happen before it actually happens. That is the key in making excellent trades. Please view the charts as a very reliable road map. When you thoroughly learn to read this road map, then you will know just how charts has all to say about price action.
I also do a Weekly Forecast that is featured in my thread. You can read it at the beginning of every week. I forecast 11 pairs, and all I use is my "road map" to know where price is headed for that week.
You did ask a very good question. I hope I answered it, at least in part. I could answer more, but I do not want to impugn upon Shailu's thread to do so.
