Technical analysis is the study of charts with the goal of
determining future price actions. While this method may appear
straightforward, the obvious question is what types of charts are
Chart pattern is a subject to tackle further along, but for the time
being, you need to know about support and resistance.
On a chart, we call this resistance. Demand is an area on a chart
where buyers are likely going to overwhelm sellers causing the stock to
go up. On a chart, we call this support.
Knowing this, it only makes sense to buy at support and sell at
Stocks run into resistance (supply) because those traders that
bought too late and saw the price go down now want to get out at break
even so they sell. Stocks find support (demand) because those traders
that missed the move up now have a second chance to get in so they
Stay away from stocks when you look at their charts, you see a lot
of zig zagging.
A good looking chart is below...