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A Beginner's Guide to Charting Financial Markets: A practical introduction to technical analysis for investors by Michael Kahn

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4. How To Use Charts – The Basics

In order to have a plan we need to set some goals. Obviously, making money is the main goal, but that is far too broad a goal to use to set up specific actions to take. Let’s keep it as simple as possible and just use charts to complement what you are already doing with other investment methods.

Sanity check

Even if investors use other forms of market analysis to find stocks to buy and sell, technical analysis can easily exist in a supporting role. Knowing what the market itself thinks about your investment candidates can confirm the stronger ones and keep you from bad risks with the weaker ones. In other words, it can help determine if the market agrees or disagrees.

Is the trend up?

Stocks can have ...

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