Technical analysis of stocks is a vague idea to most who have no idea about charts and technical indicators. Most people spend a lot of time studying indicators for notions of what price will do. They spent a large amount of time on these technical indicators for their technical analysis and then they don't even follow them.
Sounds brilliant, huh. I just wished to tell you what happens to most especially people who get too involved with technical indicators. And don't even get me began on the 'intuitive crowd' that trades by the seat of their pants thinking that they have special access to their gut feeling when almost all of the time they're beaten by their own feelings.
Usually many traders to get involved with technical analysis are traders who are emotionally afraid of the markets and attempting to look busy studying technical analysis. Real, moneymaking traders who essentially wish to get into the business of making money usually do not get too involved with technical indicators. Some use and to a limited extent. But , real traders who are offensively chasing trading is the business must use chart analysis and chart patterns for his act entry and exit points for their trades.
It's critical to differentiate between technical analysis indicators and technical analysis with chart pattern studies. I have seen more people confuse themselves with technical indicators like oscillators, moving averages, bands and channels... Not that those are bad but traders have a tough time generally trusting those indicators. And absence of trust in your trading technique will cause trouble and will noticeably delay your success.
So let's get to a point here. In technical analysis of Stock your going to need to work out the direction of the trend on the swing, the midterm trend in the long run trend. Once you arrive at trend and you can determine whether the stock is in a trend or not or is in a sideways channel or a consolidating chart pattern like a triangle consolidation.
For me, I've learned that you need to discover a technique of entry and exit that's highly clear so you'll act once the feelings are running high in you I correctly . Also it is vital that your stop loss is really clear so you cannot make excuses later for changing your stop-loss. On top of that your technical analysis wants to help find high probability events for good price movement in your favor. More on that later...