I have been reading with some amusement the posts back and forth.  It appears  technical trading / charting  is just a visual representation (i.e.  “plot and graph”) of  market / investor psychology as it relates to a specific counter in a specific time period.  The trend is an attempte to project future movements based on past history. This methodology  tries to rationalize human behavior, i.e. investor sentiment which by its very nature is irrational and is influenced by many external events.  Human behavior depends on individual human sentiments and how all these individual feelings react in a heard, because markets are driven by heards of investors.  It appears to me that this  only works if trends continue and the market is stable.   

Personally I prefer to emulate the US investor Warren Buffett - finding good companies with good products in growing markets that appear to know how to monetize their strengths.  I use technical only to try to determine entry points for longer term investments and then evaluate the growth of the company, management execution and market conditions to determine exit point.  At my age, early 60’s I feel all this jumping in and out depends to much on luck and human emotions.     

Just my perspective.  BIG seems to warrant a longer term investment.  Remember if something starts at $1.00 and goes down $0.50 it’s moved 50% but if it starts at $0.50 and goes up $0.50  it’s moved 100% and from my experience there is less stress and no annoying margin calls for naked shorts.  I would perfer to wait for dollars that jump in and out for pennies.  My philosophy has worked well for me.