An investor can benefit from the use of technical analysis for her investment decisions.
Long term charts can identify many patterns.
(a) Stocks in parabolic rallies. You should wait for corrections before entering.
(b) Stocks in trading range. These are stocks you may wish to track on lower time frame charts for breakouts.
(c) Stocks in deep downtrends. These stocks should be avoided till they begin to form bases, or succeed in tests of support.
(d) Stocks in visibly defined uptrend. Such stocks have a pattern of higher highs, higher lows. These are the stocks that you will be investing in.
Long term charts can identify many patterns.
(a) Stocks in parabolic rallies. You should wait for corrections before entering.
(b) Stocks in trading range. These are stocks you may wish to track on lower time frame charts for breakouts.
(c) Stocks in deep downtrends. These stocks should be avoided till they begin to form bases, or succeed in tests of support.
(d) Stocks in visibly defined uptrend. Such stocks have a pattern of higher highs, higher lows. These are the stocks that you will be investing in.
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If , the index or the particular Script - one may wish to choose to buy for investment,it is important to see the pattern of 'consolidation' (for a longer time) it will bounce up anytime and one need to buy the same when just before it rise up.The Flag&pole also in great help to identify this.
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