"Study the past if you would divine the future." | Confucius

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Fickle Mistress: Dealing Wisely With the Market

by Charting Wealth in Training Updates




by in Training Updates

The stock market is a fickle mistress. How do you manage her?

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First and foremost, never forget that the market is unpredictable. Because of the unstable, sometimes erratic and changeable nature of the market, we do NOT try to forecast what is about to occur. Instead, we seek to follow the established trend.

Our most recent work has focused on the largest chart (or wave) of price movement we follow: the weekly chart. Over and over again, we have found that weekly trends provide the best and most predictable price movements.

By using vertical crossovers on our charts, we identify trend reversals. Invariably, these large trend changes give successful estimates of future price movements, thereby allowing us to accurately follow, not predict, new trends. Our efforts involve no endeavors to read tea leaves, Ouija boards, bird entrails or tarot cards!

Skills must be developed in determining when to enter the trend reversal and went to exit a trade with maximum profit or, when necessary, with minimum loss if the trend quickly fails due to outside forces.

We hope you enjoy this training video. As always, this is a team effort and we see you as part of our team. We would appreciate your feedback and experience in putting this knowledge to use.

As always, at ChartingWealth.com we want you to sign up and receive our daily market review and training. We urge you to “Follow the charts, NOT the noise!” and want to help you follow the market and improve your knowledge of stock and ETF movements. Every day the market is open, we chart the overall market, the S&P 500 and the NASDAQ 100 (tech stocks), plus Gold. In just a few short minutes, we update you on what we see taking place in the market. At the end of every week, we give you an overview of what happened over the last five days and what’s on the calendar for the next trading week.

We focus on developing our skills in technical analysis. This activity is the forecasting of future financial price movements based on an examination of past price movements. Like forecasting the weather, technical analysis does not result in absolute predictions of the future. Instead, we try to anticipate what is “likely” to happen to prices over time. Technical analysis can use a wide variety of charting time periods and indicators that show price movements over time.

Since our objective is to predict future prices, it makes sense to focus on price movements. Price movements usually precede fundamental developments. By focusing on price action, technicians are automatically focusing on the future.

The market is a leading indicator and generally leads the economy by 6 to 9 months. To keep pace with the market, it makes sense to look directly at the price movements. More often than not, change is a subtle beast. Even though the market is prone to sudden knee-jerk reactions, hints usually develop before significant moves. We see the hints in our charts.

Our simple stock chart reviews and analysis can help identify support and resistance levels. These levels are usually marked by periods of congestion within the trading range where prices move within a confined area for an extended period of time. This limited movement tells us that the forces of supply and demand are deadlocked. When prices move out of the trading range, it signals that either supply or demand has the upper hand. If prices move above the upper band of the trading range, demand is winning. If prices move below the lower band, supply is winning.

We post timeless knowledge, along with our daily stock chart reviews that will educate and empower you to become a fearless and accomplished investor!

We standby the proverb, taken from Confucius, the Chinese master of wisdom: “Study the past, if you would divine the future.”

What is the cost to you? PRICELESS.

DISCLAIMER: We offer NO advice and make NO claims to expertise of any kind. This site is dedicated to knowledge and education through our stock chart reviews and other information — nothing more.


We urge you to “Follow the charts, NOT the noise!” and want to help you follow the market and improve your knowledge of stock and ETF movements.

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