Technical research of stocks is a vague idea to most who have no idea about charts and technical indicators. The majority spend a large amount of time studying indicators for ideas of what price will do. They spent lots of time on these technical indicators for their technical research and then they do not even follow them.
Sounds brilliant, huh. I just needed to tell you what happens to most particularly people who get too involved with technical indicators. And do not even get me started on the'intuitive crowd' that trades by the seat of their pants thinking that they have special access to their gut instinct when the majority of the time they're beaten by their own feelings.
generally many traders to become involved with technical analysis are traders who are emotionally afraid of the markets and making an attempt to look busy studying technical research. Real, moneymaking traders who essentially wish to get into the business of earning customarily don't get too involved with technical indicators. Some use and to a limited extent. But , real traders who are aggressively chasing trading is the business must use chart research and chart patterns for his act entry and exit points for their trades.
it's critical to set apart between technical research indicators and technical analysis with chart pattern studies. I've seen more people confuse themselves with technical indicators like oscillators, moving averages, bands and channels... Not that those are bad but traders have a hard time generally trusting those indicators. And lack of trust in your trading method will cause trouble and will seriously delay your success.
So let's get to a point here. In technical research of Stock your going to need to figure out the direction of the trend on the swing, the midterm trend in the long run trend. Once you get to trend and you can determine whether the stock is in a trend or not or is in a sideways channel or a consolidating chart pattern like a triangle consolidation.
For me, I have learned that you need to discover a method of entry and exit that is highly clear so you'll act once the feelings are running high in you I in the right way. Also it is vital that your stop loss is terribly clear so you cannot come up with excuses later for changing your stop loss. On top of that your technical research needs to help you find high chance events for good price movement in your favor. More on that later...
