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Charts Don’t Lie

Charts are the factual historical record of a stock’s price and volume information.  The data displayed in the chart is undebatable.  Investors can vastly improve their chances of success in the market if they are dedicated to learning how to read and understand the story that the charts tell.  This cannot be understated.  You will have an enormous advantage over other market participants if you choose to dedicate time and energy towards this goal.  Analyze thousands of charts.  Recognize the patterns.  Learn a winning system.  Consistently beat the averages.

This is especially true for the individual investor.  Even if a company has good fundamentals, a stock of that company should not be purchased without also referring to the charts for good entry and exit points. If it’s not the right price relative to where the charts say the price is right, it’s not the right time.

There is a lot of information to be gained from reviewing the charts of stocks.  Price history does not necessarily dictate or guarantee price performance of the future, however the story that goes along with a stock’s chart is often repeated after certain patterns are recognized.  The stock market is driven by the laws of supply and demand, and is affected by human psychology.  No system is perfect, but using price patterns to determine future price action can be used as a model for analyzing when to purchase or sell stocks.

Categories: stocks
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