The charts and technical details of a stocks trading pattern can give you many clues, on the direction of a stock. (Always do your company research for quarterly earnings reports/calls and rumors or opinions from analysts, and others in regards to your stock)
Charts can be very hard to interpret; however, if done correctly they can be like having a magic crystal ball in hand.
Some of the items we look at, when looking at a chart:
The yearly chart
200 day moving average
100 day moving average
Simple Moving Average (14)
Bollinger Bands (20,2)
MACD (12, 26, 9)
Relative Strength (14)
Chalikin's Volatility (10, 10)
As you can see there is a lot to take in. Not only do we look for certain "tells" from the above mentioned indicators, we also look for certain patterns. Some of these are:
Head and Shoulder pattern
Inverse Head and Shoulder pattern
A cup and handle pattern
Triple Top Reversal
Triple Bottom Reversal
Now these are only a few of the many tools and patterns you can find out there. Most of the tools, or indicators are provided with most on-line brokerage accounts. The patterns, you have to know, spot and analyze!
I suggest you research all of the above topics that I have mentioned. With these tools and patterns you can spot the companies you would like to invest in, and time your buy accordingly.