This post isn't meant to disprove technical analysis because God knows I use it as much as the next trader. Just a little anecdotal story to describe some of the goings on of trading through technical analysis and one of the pitfalls. This story is also a follow-up to a reply on the BBRY stocktalk's board regarding BBRY's failing pennant patter as of today.
The story goes as follows:
There once was a futures trader who "made bank" for his firm. He wasn't as seasoned as some of the others but made well off anyways. One day, his boss approached him to inquire about his success and his method. The trader gladly obliged his boss by explaining the theory of support and resistance. These mythical lines are psychological boundaries and that when price approaches these support lines it will be hindered or supported!
"HORSE FEATHERS!" The trader's boss exclaimed
As he finished his explanation, the trader's boss began shorting soybeans as it approached his employee's support line. That day soybeans reached a 52-week low.
Some have probably heard this story before and are correct to assume I paraphrased a tad but I believe I got the point across.
It has been said (by Jack Schwagger or Dr. Samir Elias, I forget) if you close your eyes and draw lines on a chart they will cross through or line up with many perceived areas of support and resistance.
I don't know if I believe it all but if it works, it works. As far as lines go, I prefer my own as opposed to Finviz's or various other platforms' "pivot points".
Cheers everyone! Have a wonderful weekend
Disclosure: I am long BBRY.