Firstly Kate has given a good rundown - the thing with the markets - they constantly change and evolve - the more technical analysis that is available the more that certain players trade in a way that covers their tracks - they are cunning and play bait and switch with the gullible -
What we try to do with chart analysis is anticipate different things that give us the edge - these days it is quite common for a stock to be sold off on good news - this in itself should encourage any smart fundamentalist to learn the basics in charting - there are so many different approaches ….
Charts tell a story - if you go back and analyse what they have done in the past in certain news events etc it just gives and insight into when a stock is preparing to run - Or when a stock is reaching the top of a certain rise - there are a lot of different situations - A good company will be perhaps harder to read - as the management and employees stick to the rules -they shut up - so big news events are indeed a surprize that will be chased ---
The charts I have posted are my attempt to pick the story apart - right now we are waiting on anticipated results - traders will buy and when stuff doesn't happen fast - they get bored and (cranky ) and dump their stock - the thing to look for is what the price does - is someone stepping in an mopping up that stock ?
these things can be assessed to a certain extent with charts - I like fundamentals and will usually base my analyses of the chart with that in mind -
If it is a flash in the pan daytrade I will go purely on what the chart and volume are doing -
All trades have a different criteria and there are different tactics in all trades- Us little folks are playing against the house -
So if you care to learn there is a wealth of information out there - there are no guarantees - often a chart is as accurate as the person that reads it - charts are probability of crowd behaviour -
Have a look on you tube - start with the Wykoff method - you never know you might get the spark and go on the journey of learning how it all works
(20min delay)