The chart technique is often smiled at, but it can be quite useful.
Frankfurt The chart technique is often ridiculed. Analyzing prices from the past in order to distill trends for the future? That sounds a lot like reading coffee grounds. Especially since no securities prospectus can do without the addition that past price data does not allow any conclusions to be drawn about future price developments.
The chart technique does not make it easy for beginners either: with shoulder-head-shoulders formations, one or the other may still be able to follow, but at the latest with Fibonacci lines or Ichimoku clouds, many should be out. However, it is not necessary to understand all the intricacies of charting. Even the rough analysis of price developments provides investors with valuable orientation.
In the current market phase, the value of technical analysis can be seen, for example, in the leading German index Dax. Since the most recent Dax rally in February lost momentum and moved sideways, a support zone has formed around 15,240 points. Here at the latest, every setback ends at the Dax.
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