Originally Posted by Reds Nd2
I think using technical analysis could be useful in finding entry/exit points, even if the overall strategy is buy and hold. My problem is that I'm not very educated on this. What charts do you use specifically and do you have any websites that you recommend for further study? Do you chart individual stocks or just the indexes?
The first thing to know is that technical analysis is only as good as the guy interpreting it. (Similar to a baseball scout, some are just better than others)
The second thing you need to understand, is what are you hoping to get from the charts. Are you looking to find a tech stock that is primed for a run? A long time dividend payer at a low? The charts you may use to track entries/exits for those kinds of opportunities are very different.
Once you understand what you are looking for, look for the indicators you think will give you this info. I like to look at stocks that pay a dividend and are beat down. I am looking for a turnaround so I can buy in early.
is a good place to start understanding some basic charting/indicators. I would suggest starting with SMA and plot (3,13,50 for shorter term, and 20,40,200 for longer term) and check out some stocks you follow to see what it may/may not have told you.
I like to browse through these
and see how other people implement them.
The last thing to be aware of is time. Some people chart in minutes, others in days, others in weeks, months, years, or decades. If you use other peoples charts to make decisions, you will often be very wrong. If you use a chart and don't do due dilligence, you will very often be wrong.
I use them purely to decide when to buy sell, not what to buy sell.
/That's my opinion, and probably exactly worth what I am charging for it.