Now, you can give a clipboard and a stethoscope to any member of the general public that happens to be passing by. However do you really think anybody knowing this would actually allow this person to diagnose and treat them?. I doubt it.
I am happy to offer my opinion on which patterns to follow and which patterns to avoid. How you choose to use these patterns and my opinions is up to you, whether or not you happen to make money from this advice, again that is entirely up to you.
So if you are considering becoming the proud (or not so proud owner) of a new stock then you really should consider reviewing my articles to understand these patterns and their implications to your stock. All of this free information that I will give you for some of you will be new, for others it will be a refresher about the pattern identification quirks, performance, as well as tips on how you might get in sooner, or potentially become more profitably.
When you have reviewed the patterns, it is then time to look for similar patterns in the same stock (you do this using different time scales as well), and if that does not work, you should search for similar patterns in stocks within the same sector. Personally I review them closely to determine if the price and patterns can be applied to the current situation. I do this for the purpose of determining if there is anything to be learned from previous mistakes.
While doing this you should consider starting the process of paper trading the chart formations of your selected stocks (don't panic this process only takes a few minutes a day per stock). Again, even if you are an experienced investor (like me with more than 15 years experience), I find that the real benefit of paper trading is that it keeps me alert and agile.
Going through a process like this has made the task of buying or selling a stock a much more disciplined and reflex action rather than having to make a conscious laborious effort. The continual checking on how the chart pattern is progressing makes me to develop a much more intuitive feel for the patterns, the stock, and indeed the market.
Paul Thomason is the founder of Elliott Wave Market Service, a market forecasting video service that specializes in the use of Elliott Wave and technical analysis. Elliott Wave Market Service offers a comprehensive market technical evidence based market direction financial forecast system that has been proven highly accurate. Member services include daily video forecasts for international markets, U.S. markets, stocks, commodities and currencies.
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