During his discussion with CNBC's Mike Santoli, deGraaf said:
"It's a great check and balance. ... The market will fib, but it doesn't lie. It certainly doesn't lie for long and I think it's a really good way to just keep an honest assessment of what your thought process might be and whether the market believes it or not."
DeGraaf is the best chart analyst on Wall Street over the last decade, according to Institutional Investor magazine. He was formerly the head of the investment policy committee at ISI Group.
See the short video below for his full explanation: