Technical Analysis Tips
The professional investor looks at the same stocks and only buys when there is a SALE going on. He doesn't care about analysts or market hype. So when everyone has given up and sold, he is buying. After a month or two the stock rebounds and Wall Street loves the stock again. Analysts hop on board and upgrade the stock to a strong buy, raising estimates and new fools come in and buy the stock at the all time high. The professional investor then dumps his stock and looks to find the next stock that is at a bargain price.
- Technical Stock Analysis doesn't look at income statements, balance sheets, company policies, or anything fundamental about the company. Instead it looks at the actual history of trading and price in a security or index.
- Every technical analyst knows the importance of charts and indicators. But if these were all it took to make profitable trading decisions, everyone would be a winner.
- volume-based technical analysis is very effective for analysis of future prices of QQQ (NASDAQ: QQQ), S&P 500 (AMEX: SPY), Dow Jones Industrials (AMEX: DIA).
- With most indicators it is possible to detect buy and sell levels. The sport is to detect them before everybody else.
- Analyze market data in real time. Plan your own Market Timing strategy to make money, regardless of upward or downward trending markets.
- Every technical analyst knows the importance of charts and indicators.
- Study charts often (daily if possible).
- Minute-by-minute trading volume shows the reversal points of the market, and therefore when to buy and sell!
- "The trend is your friend" is the motto of technical analysis