The cornerstone of this research is technical analysis, more specifically Point Figure charting. Fundamental research tells what should happen, while technical research tells us what is happening and indicates the future possibilities. In other words, the Point Figure chart aims to answer the question of When to buy and When to sell. It is a top down approach to investing using technical market indicators that have been in existence for almost forty years to ascertain the overall risk in the market. You then analyze broad industry sectors to determine which sector has good field position.
Industry sectors move in and out of season just like produce in the supermarket.
Finally, it is time to select an individual stock with positive relative strength that has a high probability of outperforming the market. In other words, demand is in control. There is always a time to buy and a time to sell even the most attractive security. In fact, avoiding several losses is more important than obtaining gains in determining overall market performance over the course of an entire market cycle. A process with which you understand and agree will help you become a more successful investor.