Basing investment or trading decisions off of emotions like fear and greed can be a portfolio-killer.

Take, for example, people who sold their positions in names such as Netflix ( NFLX), Palm ( PALM), Quality Systems ( QSII) and Shanda Interactive Entertainment ( SNDA) a few months ago thinking these stocks just couldn't go any higher. Unfortunately, those people were dead wrong, and all of these stocks just continued to trend higher and hit new highs.

The same can be said for stocks that are trending lower. Many times investors just refuse to believe that a stock will continue to go down. They get into the game of buying more shares as the stock falls hoping that one day things will turn around and they will have picked the perfect bottom.

Of course, it's easy to see that applying this type of strategy has been a disastrous method. Just look at General Motors ( GM), Fannie Mae ( FNM) or the now-defunct Bear Stearns.

These are all examples of why it's so important to consider technical analysis and chart-reading when it comes to putting capital to work in the stock market. By simply examining a stock's chart, you can get an inside look into its money flow (volume) and overall trend (price action).

Market players who buy strength and sell weakness are often reward with solid gains because instead of fighting the market, or investing based on an opinion or feeling, they simply follow the trend. Of course, doing this can often mean going against human nature, because many investors have had it drilled into them that buying low and selling high is the way to make money on Wall Street.

With this in mind, let's take a look at a few charts that could be setting up to make significant moves either up or down in the near future. These following charts are displaying clear trends that could be tells for the next leg of price action for these stocks.

To read more and see the charts, visit Stockpickr.com.
Stockpickr is a wholly owned subsidiary of TheStreet.com.

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