Use Technical Analysis to Know When to Buy or Sell Stocks
When it comes to stocks, they always tell you to buy low and sell high, but how do you determine that point? I use what is called a technical analysis. With a technical analysis, you can determine with some measured degree of certainty where those point are. If you are buying a stock, it will give you signals as to when to buy. When selling a stock, it will also give you signals when to sell.
I have created a video that is part of this article that describes in very simple, but comprehensive terms how to use the three indicators that I use. They are; volume, stochastic, and Moving Average Divergent Convergence (MACD). Don't let these names scare you. Believe me, after viewing this video you will see how easy it is to use these indicators. They are not rocket science.
After viewing this video, you will learn the following:
- The difference between a fundamental analysis and a technical analysis
- The difference between income stocks and growth stocks
- How to use the Volume, Stochastic, and MACD to give you signals when to buy and sell stocks.
One Year Chart of Dow Jones Industrial Averages (12/5/2018)
The below chart shows the Dow Jones for a one year period of 2018. The "head and shoulder formations" are highlighted in yellow. As you can see 2018 has been a very tumultuous year for the stock market. Following every head and shoulders, there has been a significant downturn in the Dow.
© 2012 Mike Russo