Apprenticed Investor: Tracking Elephants, Part 2

In the last installment of the Apprenticed Investor series, we discussed how charts reveal the elephantine footprints of institutions and shared the golden rule of technical analysis: Don't buy stocks when they are in a downtrend.

But the charts have many other uses -- even for nontechnicians. Fundamentalists can use technicals to help with their risk management, as well as their decision-making process.

This can be accomplished without using complex pattern recognition to predict where a stock might go, or tracking volume for confirmation of a move. ...