Charting and Technical Analysis Quotes

“You don’t make money by trading, you make it by sitting.” It takes patience to wait for the trade to develop, for the opportunity to present itself. Let the market come to you, instead of chasing the market. Chart patterns are very accurate. They have proven their accuracy and predictability time and time again, but you have to wait for them to develop.”
― Fred McAllen, Charting and Technical Analysis

“If you ignore the primary trend, you are most likely going to lose money. The only time you should be buying stocks, index funds, or mutual funds is when the primary trend is advancing. But even then, you want to get in on the early stages of the advance. You don’t want to be the last one to the party.”
― Fred McAllen, Charting and Technical Analysis

“Charts really are the ‘footprint of money.”
― Fred McAllen, Charting and Technical Analysis

“In the following chart we see a trend line drawn connecting the support levels where the stock has found support on 3 separate occasions. See Figure 9-1 below. It only takes two points, or lows, to draw a trend line. Meaning, the trend line drawn in the above chart could have effectively been drawn after the stock had found support at point 1 and at point 2. However, while it only takes two points to draw a trend line, a third point is necessary to identify the line as a valid trend line. How does this help us? By drawing a trend line connecting points 1 and 2, we can then extend the trend line to the ‘infinite.’ Understand?”
― Fred McAllen, Charting and Technical Analysis

“Entry and exit points are vital parts of trading and investing. That is worth repeating.  Entry and Exit points are vital parts of Trading and Investing. Whether you are Day Trading, Swing Trading, or are a Long Term Investor. Why would you ever buy a stock at the wrong time? Unfortunately, there are many market participants with no training that do it every day. The Pros love the uninformed, the novices, and the Pigs. Who else are they going to sell to when a stock has reached a resistance point, or reached an all time high? You guessed it. They are going to sell to the novices and the pigs who are hoping for more advance. Then when the stock drops, falls to support, or finds support somewhere, the Pros will buy it back from the novice who has just taken a loss and a beating. “The time to buy is when blood is running in the streets” ~Baron Rothschild”
― Fred McAllen, Charting and Technical Analysis

“Entry and exit points are vital parts of trading and investing. That is worth repeating.  Entry and Exit points are vital parts of Trading and Investing. Whether you are Day Trading, Swing Trading, or are a Long Term Investor. Why would you ever buy a stock at the wrong time? Unfortunately, there are many market participants with no training that do it every day.”
― Fred McAllen, Charting and Technical Analysis

“This is also a good lesson in patience. A new investor or trader usually lacks patience and has the tendency to want to jump in, fearful of missing out on an advance. Don’t make that mistake. Wait for the confirmation. Buy at the bottom, not at the top. And, always use a Stop Loss to protect your capital. “Nothing gives one person so much advantage over another as to remain cool and unruffled under all circumstances” ~Thomas Jefferson”
― Fred McAllen, Charting and Technical Analysis

“As the stock trades lower each day, what is the volume doing? Right! It is increasing. The volume is confirming the trend. We always check the volume. If a stock is advancing and the volume is declining, then it is not confirming the trend.”
― Fred McAllen, Charting and Technical Analysis

“You don’t make money by trading, you make it by sitting.”
― Fred McAllen, Charting and Technical Analysis

“Holding losses and hoping to break even is not an investing or trading plan. That is dumb money on suicide watch!”
― Fred McAllen, Charting and Technical Analysis