How to be a successful stock market investor using technical analysis.

‘VALUE INVESTING’ based on fundamentals of share if not timed properly may lead to disappointment or even disaster. Once a share is analyzed to be fundamentally strong and is identified as a long term or a short term buy candidate then the investor should go for a technical analysis on the share to fix the time to buy. Every share price has a pattern of movement based on many factors.

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For example in the case of a new stock even though the pricing is done by book building depending upon the basis of allotment  and demand and supply gap the stock price could tend to move up in the short run but decline immediately thereafter. The price chart move indicates the Accumulate, Ascend, Flat and Descending patterns.

Technical Analysis thus encompasses fundamental, economical and political analysis also and thus become a more reliable tool in the hand of a value investor.