“Even if one scoffs at charts himself, the fact that they are being so widely used by performance funds and even by banks argues for paying some attention to them. At times they provide the only clue to the stock market’s aberrations.
Chart-induced excesses in the market should be welcomed as providing investment opportunities for those who understand the fundamentals of the situation. It is a lot easier to keep one’s faith in temporarily disregarded fundamentals when one knows the technical developments behind unwarranted buying or selling.”
-Thomas William Phelps, 100 to 1 in the stock market