Hi to everybody who`s read my posts, I`ve been traveling a lot in the couple of months, hence the reason I haven`t been able to post any blogs.

I`m sorry for this but not to worry because IM BACK! and i`ve got quite a lot of usefull information to share with you all.

PHILOSOPHY OR RATIONALE

PHILOSOPHY OR RATIONALE

SEPTEMBER 2010- Part 1.

There are 3 premises on which the technical approach is based.

1. Market actions discount everything.

2. Prices move in trends.

3. History repeats itself.

As a rule, chartists to not concern themselves with the reasons why prices rise or fall.

Very often, in the early stages of a price trend, or at critical turning points, no one seems to know why a market is acting in a particular way. While the thechnical support may sometimes seem over simplistic, in its claims, the logic behind this first premise-that markets

discount everything-becomes more compelling the more market experience one gains.

It follows then that if everything that effects the market price is ultimately reflectes in market price, then the study of that market price is all that is necessary. By studying price charts and

a host of supporting technical indicators, the chartist in effect lets the market tell him or her which it is most likely to go.

The chartist does not necessarily try to outsmart or outguess the market. All of the thechnical

tools discussed in some later sections are simply techniquesused to aid the chartist during the process of studying market action. The chartist knows there are plenty of reasons why markets go UP or DOWN. He or she just doesn`t beleive that knowing what thjose reasons are is necessary in the forecasting process.