I don't agree with that. ABC might be a company you want to own for the long term. In the latter, you've made your money work a little more efficiently. In the case of the former, you've made money when the stock was going up, coming down, and then going back up again. Either way, your money has worked harder for you.
Technical analysis can aid in predicting turning points and direction in securities prices.
Sentiment Indicators Sentiment indicators measure the expectations of participants in the market. These participants can be broken down to include odd lotters, corporate insiders, NYSE members, advisory services, mutual funds, institutional traders, and floor traders. These sentiment indicators are actually measuring the emotions of these investors. As is the case with most things in life, emotions change. They swing back and forth.