In recent discussions, there was mention of Warren Buffett. The first chart is Buffett style. And yes, he is not fond of and doesn't care about charts. The chart below clearly shows that with time, stock market or index goes up.. This technique is what he uses to build wealth (time).
Charts come in if you care what is going to happen in 3 days to 12 months and if you are interested in manouvring in and out to duck a fall or ride a rise. Why not just select a good collection of 5 stocks that represent the ASX and just leave it for 11 years? Buffett does it and it is clearly shown to work. I think it is the character and inclination of the person. If technically interested and inclined or not. If you are an engineer, yes. If you are an artist, maybe not. The chart shows that there were ups and downs along the way. So, a technically inclined and capable person starts to think and feel and get attracted to avoiding the downs and getting in on the ups. Human nature. Clearly, if one can get it even half right, you could get not 133% in 11 years but 2000%. So, if you are happy with 133% and want a sure safe way, then just buy and hold the index and don't care about charts. But if you want to have a go at >133%, then that is where you will need to look at charts. Buffett doesn't believe and like charts because he uses another method. He goes out and looks for a company to buy and raise it himself and gets better than 133%. Direct to the company. No need to give thought to chart. AND, really looks like he is not chart inclined or able.
The other day I used the word "converted". Wrong word as it sounded like religion and gave reference to religion. I should have just said that it just made me aware that charts have great information in them.
Back to TLS. Yes, recently broke $3.89 but didn't mean it was just going to keep going up. Before the break of the line and $3.89, I noticed that TLS left a gap on the hourly between $3.76-$3.77. So I knew when this run paused, it was going to come down to close that. The price between 15 and 16th January (high and low of these days =$3.84) so had to be bridged, meaning $3.84 and $3.83 needs to happen. Here I am going to go with a few coulds and shoulds. But I have to as I explain. So, looking at this current weakness, best is to start with he hourly chart. When the stock is on an uptrend (as TLS is), the weakness will often be down to RSI 50 level (hourly). As has happened before and shown "a". So this current could also be like an "a" on the hourly. Safest is to not chase it and let it go down to RSI 27 on the hourly, "b".
And looking at the daily, softness during uptrends often to the extent of touching the 22 EMA, and/or daily RSI down to 50 level. Stochastic can only be as low as 40 (when very bullish) or best is to let it go down more, under 10 is great. So, I would wait a little more to arrive at these RSI, 22EMA, gap levels before buying more. I am waiting.
Notice on the last chart, the pull back today touched the resistance line from the top side. Kind of using it now as support. Good to note that. Volume also down sloping since last week.
If you are doing a Buffett, don't pay any attention. Chart doesn't matter. Just believe in the sector or company.
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