Reading Stock Charts
Reading charts is an art form that can take years to fully master.
Why do we read charts?
Because,by reading charts,we can determine what the "big money" is doing!
You have to be able to analyze a chart and come to a conclusion about whether or not
to risk your hard earned money on a trade.That is really the bottom line.
And this is what separates the novice trader from the professional.
There are several factors on a chart that make it worthy of trading.
By analyzing these factors,we can determine with high probability which direction a stock
will move.
WISE WORDS from :
Dr.Alexander Elder
A good signal jumps at you from the chart and grabs you by the face-you cant miss it!
It pays to wait for such signals instead of forcing trades when the market offers you none.
Amateurs look for challenges;
Professionals look for easy trades.
Losers get high from the action;
The Pros look for the best odds.
William J. O`Neil
History repeats itself in the stock market.
Many price patterns and price consolidation structures that stocks form are repeated
over and over again.
Edwin Lefevre
If a stock doesnt act right dont touch it;because being unable to tell precisely what is
wrong you cannot tell which way it is going.
No diagnosis,no prognosis.
No prognosis,no profit
Linda Bradford Raschke
Some of the best trades come when everyone gets very panicky.The crowd can often act
very stupidly in the markets.You can picture price fluctuations around an equilibrium level
as a rubber band being stretched- if it gets pulled too far,eventually it will snap back.
As a short-term trader,I try to wait until the rubber band is stretched to its extreme point.
