Jim Cramer isn't a chartist, but he understands why charts are so important for predicting the next big stock moves.
"You must consider them as if they are footprints at a scene of a crime. These footprints trace out what big money managers might be doing with their buying and selling of stocks," the "Mad Money" host said.
The second reason to care about charts, Cramer said, is that there is a remarkable self-fulfilling nature of charting stocks. Some of the best investment ideas can come from chart-inspired brainstorming sessions. However, Cramer has found that the best way to produce results is with a careful melding of both fundamentals and technicals.
A good technical analysis means being able to find the indicators that will help to determine the overall direction of the market, especially since so many stocks are influenced by S&P stock futures.