Charts come in super helpful once the uptrends end and the narratives turn to noise. pic.twitter.com/BwMvAGexpP
— Arun S. Chopra CFA CMT🧐 (@FusionptCapital) November 6, 2019
Today’s Chart of the Day was shared on Twitter by Arun Chopra (@FusionptCapital). The chart shows two weekly candlestick charts, the S&P 500 index (top) and Bitcoin (bottom). Arun points out that both Bitcoin and the S&P 500 bottomed at their respective 200-week moving averages when they were selling-off in 2018. Arun explains: “Charts come in super helpful once the uptrends end and the narratives turn to noise.” Arun is describing one of the biggest benefits of using Technical Analysis. It allows you to tune out the noise and focus on what matters, which is price. For example, when the S&P 500 was selling-off in the final three months of last year, it would’ve served you well to use things like the 50 and 200-week moving averages as a guide rather than basing your decisions on the panic seen in the media.