Price is key when it comes to the market. Of course, there are many different ways to evaluate a company and all the different methods have their advantages, but the company’s pricing patterns still give you the most accurate signals to buy and sell.
More than any oscillator, any fundamental ratio or any price on a probability chart is still the king of the world stock market. Growing stocks will continue to grow until people panic and start selling. Shares in a downward trend will continue the downward trend until something happens.
In addition, patterns that have historically occurred in company prices, such as chart patterns and candlesticks, will continue to reappear over and over again. However, people behave in a predictable way. They have behaved in the same predictable way since there is such a thing as a stock market. Price trading patterns allow you to take advantage of this.
It also allows you to reduce your losses. Looking at the price, you can find key levels of support and resistance that if they break through can mean a big move. This makes it easier to find stopping places and targets.
Now I’m not saying that price is the only thing to pay attention to when trading stocks. There are many other indicators that are also worth looking at. The volume tells you how many people traded during the day. A strong upward trend with a small volume may indicate that the trend is not so strong.
Other indicators such as oscillators and financial indicators may be good secondary indicators. Looking at a few different things about a given security usually works best. But at the end of the day, price is what matters. You don’t make money based on how much debt a company has or what the oscillator does; you make money based on where you sold stocks and where you bought them. The market is that simple use of price patterns is easy, it is a perfect combination.