By Roberto Pedone
WINDERMERE, Fla. (
can be a great asset to investors who want to determine what the trend of the market or a stock is before they throw down hard-earned money. Consulting the charts can help you spot important market action before it happens, preparing you to follow the trend and make the right trade.
Technical analysis is a method of evaluating securities by relying on the assumption that market data, such as charts of price and volume, can help to predict future market trends. Technical analysis will help guide you to discovering the chart patterns that offer the highest probability of success.
For instance, if we're going into a bear market, technical analysis can help you avoid stocks until you see some signs of stabilization or consolidation. And combining technical analysis with fundamental analysis will give you an edge over other market participants.
Currently, a number of market technicians want to see the
Dow Jones Industrial Average
break above 10,600 in order to reverse the current market downtrend that has many investors worried that a larger bear market is looming. A move over 10,600 would indicate that the uptrend is back on track.
Here's a look at
some compelling charts
that are piquing the interest of the Stockpickr community.