There's more to investing in stocks than just selecting a company with good fundamentals. This is because stocks trade on what the future holds, not last quarter's financial results. A stock's current share price reflects the future prospects of and expectations for the company. But that's not all.
Stocks also have memories.
The reason for this is that the stock market is nothing more than a collection of individual investors who are busy buying and selling stocks. These investors remember a stock's past, and this influences their buying and selling behavior. TA can be a powerful tool in identifying trend reversals and entry and exit points. The best way to analyze the trading patterns of a stock is to look at a chart of it. We can't stress this enough.