The analysis of chart patterns and trading volume to identify promising buy and sell signals. Each price tick will show the daily range and the closing price. Pure Technicians do not involve themselves with the business, competitive dynamics, valuation, growth rates, etc.
Technicians use chart patterns to forecast future price movements.
Fundamentalists also can use technical charts to determine entry and exit points where stocks are extended or have retraced a big price move and should commence a new up-leg. Short term normally implies days to weeks, intermediate implies weeks to months, while long term means months to years. The types of charts each type of trading horizon should employ is listed below. Moving Averages suggest the smooth trends in the stock most often used by technical investors based on time horizon. First, let's define trendlines .