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We use technicals more then fundamentals

To find the right trades at the right time we use technicals,we read charts and we must read charts correctly , charts show many clues of the stock`s movement ,where its been ,and where its going .

There are many formations that occur often and as we see them we position ourself to take advantage of them , without reading a chart how would you know where the stocks been ,where its at now and where it might go soon.

Lets disect a stock so i can show you exactly the art of technical analysis and remember the better chartist you become the better the trader you will be.

Here is the high flyer " GOOGLE " we are going to disect it now . This was on 12-21-06 this is a daily chart,what do u see ?



Down trend ? well we really need to see more chart to see the bigger picture, so lets look at it ,all charts on 12-21-06 this is about 6 months same chart as above just more days on it, <<<<>>>>



This is about 2 years we are looking at now <<<<< below>>>>>



Now lets look at a chart with a formation on it , its a head and shoulder formation just look at the right side <<<>>>



I want to show you the longer formation now , the wedge, it took many months to make it and then it broke out of it and moved more then $50.00 a share up.<<<<< below>>>>>>



These are all google charts , now lets examine the head and shoulders formation closer. The technicals >>>>> below>>>>>



The red line is the neck line of the head and shoulder formation and once that is broken you can short the stock or buy puts on it ( puts are options to go down ) is it going down now !

You can also predict the size of the movement by the size of the formation, from the top of the head to the neckline is about how much google will move down once it broke the neckline, thats about $ 30.00 +- a share its a good trade,

I will show you now the longer term formation ,The wedge in more detail . Technicals <<<<>>>>>