WINDERMERE, Florida ( Stockpickr) -- Technical analysis can be a great tool for investors who want to determine what the trend of an asset is before they decide to buy or sell. Consulting the charts can help you indentify key market behavior 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 moves and trends. Technical analysis will help guide you to discovering the chart patterns that offer the highest probability of success. By consulting the charts and using technical analysis, plus combining those methods with fundamental analysis, you will truly have an edge over a majority of market participants.

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From a technical perspective, the S&P 500 is about 40 points away from testing yearly highs at 1220. The Dow Jones Industrial is currently about 100 points away from testing its yearly highs at 11,258, and the Nasdaq is around 70 points away from its yearly highs at 2535.

Clearly the overall market is in a solid uptrend, and a test of the yearly highs on all of the broad market indexes should occur very soon. The one canary in the coal mine is now the potential of a strong rally in the U.S. dollar. If the dollar can extend its recent gains and seriously start moving to the upside, then we could see the overall market sell off in the short term.

Recent dollar strength has already begun to take down commodities such as oil, silver and gold. And although it hasn't taken down stocks that much yet, it has put a lid on market rallies during intraday trading. If the dollar starts to move big to the upside stocks will almost certainly come under selling pressure. So if you're trading stocks, you need to be watching the dollar very closely right now. It will shape the technical picture of trading going forward.

Here's a look at some compelling charts that are piquing the interest of the Stockpickr community.

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