| Technical analysis of stocks is a vague idea to most | | | | It's critical to differentiate between technical analysis |
| who have no idea about charts and technical | | | | indicators and technical analysis with chart pattern |
| indicators. Most people spend a lot of time studying | | | | studies. I have seen more people confuse |
| indicators for notions of what price will do. They | | | | themselves with technical indicators like oscillators, |
| spent a large amount of time on these technical | | | | moving averages, bands and channels... Not that |
| indicators for their technical analysis and then they | | | | those are bad but traders have a tough time |
| don't even follow them. | | | | generally trusting those indicators. And absence of |
| Sounds brilliant, huh. I just wished to tell you what | | | | trust in your trading technique will cause trouble and |
| happens to most especially people who get too | | | | will noticeably delay your success. |
| involved with technical indicators. And don't even get | | | | So let's get to a point here. In technical analysis of |
| me began on the 'intuitive crowd' that trades by the | | | | Stock your going to need to work out the direction |
| seat of their pants thinking that they have special | | | | of the trend on the swing, the midterm trend in the |
| access to their gut feeling when almost all of the | | | | long run trend. Once you arrive at trend and you can |
| time they're beaten by their own feelings. | | | | determine whether the stock is in a trend or not or |
| Usually many traders to get involved with technical | | | | is in a sideways channel or a consolidating chart |
| analysis are traders who are emotionally afraid of the | | | | pattern like a triangle consolidation. |
| markets and attempting to look busy studying | | | | For me, I've learned that you need to discover a |
| technical analysis. Real, moneymaking traders who | | | | technique of entry and exit that's highly clear so you'll |
| essentially wish to get into the business of making | | | | act once the feelings are running high in you I |
| money usually do not get too involved with technical | | | | correctly . Also it is vital that your stop loss is really |
| indicators. Some use and to a limited extent. But , | | | | clear so you cannot make excuses later for changing |
| real traders who are offensively chasing trading is the | | | | your stop-loss. On top of that your technical analysis |
| business must use chart analysis and chart patterns | | | | wants to help find high probability events for good |
| for his act entry and exit points for their trades. | | | | price movement in your favor. More on that later... |