The Technicals

 

     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)

 

Volume

 

MACD (12, 26, 9)

 

Relative Strength (14)

 

Accumulation/Distribution

 

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

 

Falling Wedge

 

Rising Wedge

 

Triple Top Reversal

 

Triple Bottom Reversal

 

Ascending Triangle

 

Descending Triangle

 

     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.

 

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