Archive Traders' Glossary Novice Traders' Notebook Products Store. If you want buy and sell signals from a charting system, point and figure charting may be for you. W hen you purchase stock in a company, you must make two decisions. The fundamental analyst is concerned with financial statements, company history, management, earnings, dividends, industry position, and product popularity. The technical analyst is concerned with supply and demand, accumulation, and distribution.
Most stocks have substantial price moves at one time or another.
Before a stock price goes up, it usually goes through a period of accumulation, and before the price goes down, it usually goes through a period of distribution. The basic PNF chart of a rising price shows a column of Xs. A column of Os means the stock is falling. Assuming you are satisfied with the fundamentals of the company, you should buy the stock only when the market, the industry group, and the stock are in an uptrend. Conversely, you should sell when the market, the industry group, and the stock are in a downtrend.