“As we go through the charts of the daily indexes and individual names we see a lot of POL’s (Pullbacks Off Lows). In downtrending markets POLs are the only pattern you need to know for shorting. Those POLs are also the what to watch out for if you are long.”
When It Rains It Pours
Technical analysis, or charting, is the art and science of graphing past price movements of an asset in attempt to divine their next moves. In a world of sophisticated financial analysis and correlations between various arcane assets, charting is often dismissed as voodoo. Despite claims to the contrary, it's a dirty truth of Wall Street that everyone analyzes charts.
To a first-time observer, watching a technical analyst spot a major trend change in a financial market before it occurs can seem as mystical as pulling a rabbit out of hat. But once you learn the tools of the trade, you know there are no tricks up the technical analyst's sleeve. What you see, is exactly what you get.
The past month investors have been hit hard from the falling stock market. Those who owned gold and bonds have been rewarded. During times of economic fear which leads to selling of stock shares investors and traders find safety in gold and bonds. It was this surge of money coming out of stocks that propelled the price of gold and bonds sharply higher through-out this selloff.
8/24/2010 Talking Technicals Market Recap - General Stock Market Technical Analysis
Technical Analysis - Learn To Forecast the Future of the Market
Stock Market Tips - Learning How to Be a Successful Investor
From the outside, the driving principles of the stock market can appear to be very simple. The market operates within the familiar constrains of supply and demand, and if you can manage to buy a stock when it’s priced low and sell it when it’s priced high, you’ll be able to make a profit, which can then be reinvested for even greater gains.