Technical Analysis

Technical Analysis:

Market moves in three directions: Up, Down, Sideways

MARKET TRENDS
Long- Term: 9 months or longer
Largest overall focus of most investors

Intermediate: 3-9 months
Lasts weeks or months

Short-term: days to weeks but not more than three months
Ripple effect

Regardless of time frame, try to identify long/intermediate and short term trends. When riding ripples or waves helps to know i fthe stocks stide is going in the preferred direction. Go with the tide and ride the waves in..

Support: Imaginary price level that is difficult for a stock to move below beacuse there are so many investors willing to buy at that level. Investors create support when the bulls gain enough momentum to overwhelm the bears and stop or reverse downward movement.

The more often a stock price bounces off a support level the stronger the support level becomes.

Resistance: Opposite of support. Imaginary price level that is difficult for a stock to penetrate on the upside. Created when the bears gain enough momentum to overwhelm the bulls and stop or reverse upward movement.

Diagonal Resistance:
Occurs after a stock creates two consecutively lower peaks.

Price Channel: Range defined by a strong support level on the bottom of the price and strong resistance level on the top of the price. Help identify possible entry and exit signals.

Guidelines to consider for identifying potential breakout:
3 percent: Consider it a breakout if the stock price penetrates the previous level of support or resistance by atleast 3 percent.

150 percent: More significant if it occurs on atleast 150% of average daily volume.