I pay attention to the Fundamentals and the market momentum but, for me the most important aspect of my analysis are the Technical Indicators because you cannot time market entry and exits points with Fundamental propaganda. You have to look at the weekly, daily, and hourly charts and a well designed combination of market indicators in order to know when to buy or sell a market. Fundamentals will never tell you when to buy or what price is too high or too low. When you really understand the technical indicators, you will see the precise interpretation of the fundamental data reflected in the movement of the price.
The reality is that the only reason why the price of stock will rise, is when the majority of the traders believe it is cheap at current price levels and are therefore are willing to pay higher and higher prices for those shares. The price of a stock will only fall when the majority of traders believe that the price has gone up too far too fast and they begin acting as if the price of a stock is becoming increasingly overbought and that this is a very good place to take profits because the market is about to collapse for a much needed price correction.
That's the only reason why the markets will go up or down. That is the reality of it all. The only way to know that market sentiment is to watch price and volume movements and apply the tried and true market analysis techniques that have been developed over many years and which all professional traders watch closely and identify with. That is the reality of trading. So, that is where I invest my time so that I might make the very best possible buy and sell decisions.
A rising wedge is very reliable indicator of a fort coming market correction. Today's huge volume and price decline are synonymous with a confirmed breakout of a rising wedge. You can expect prices to drop sharply tomorrow. There was a great deal of profit taking today and short selling as well.
AI
