You’re looking to invest in a new stock. How can you use Technical Analysis to evaluate its performance?

Personally, i use multiple time frame for my trading. First a daily chart to get a feel of the overall trend. then zoom in to the 15 min and the 5 min charts for the "mini bounds". The trend is your friend. I always try to trade with the trend.

Choosing the correct time frame is the first and one of the most critical aspects of trading. For instance, if you prefer intraday trading, monthly or weekly charts won't be beneficial. Instead, opt for shorter time frames, like 5, 15, or 30 minutes. Scalpers, on the other hand, may find 5, 10, or 15-minute time frames too long and prefer 15-second, 30-second, or 1-minute time frames. Now, Swing traders typically need to utilize 1-hour, 2-hour, or 1-day time frames. However, personal preferences vary, but selecting the right time frame is crucial for executing successful trades because you cannot start a trade without actually choosing the correct time frame.

Technical analysis can be applied to various time frames, such as intraday, daily, weekly, or monthly charts. Choose a time frame that aligns with your investment horizon and trading style.

Technical analysis involves evaluating a stock's performance by examining its historical price movements and trading volume. Key tools include price charts, trend lines, moving averages, and technical indicators like RSI and MACD. By analyzing these factors, investors can identify patterns and trends to make informed decisions about buying or selling a stock. Additionally, factors such as support and resistance levels, chart patterns, and trading volumes can provide valuable insights into the stock's potential future performance.

To evaluate the performance of a new stock using technical analysis, I would analyze historical price data, identify trends and key levels, assess trading volume and momentum indicators, examine chart patterns, and consider external factors such as news and events to make informed investment decisions.

Trends are crucial in technical analysis. We use trend lines, moving averages, or other indicators to determine the overall direction of the stock's price movement – uptrend, downtrend, or sideways.

Trend is almost everything unless you are doing swings. the trend is your friend. It is always (relatively) "easier" to trade along the trend than against the trend. We can use 20-50-200 Moving averages. the long trend can be sniffed out using Golden cross and Death cross, which is when 50MA cut the 200MA upwards, and vice versa

I use only two indicators whether it's daily or weekly charts. 34 day ema and 13 day ema. Those two moving averages will tell you all you need to know.

The common way to trade is go along with the trend. Use the trendlines ,moving averages, support resistance, RSI, Bollinger bands to confirm bullish, bearish, or flat markets. For example: Analyse the pattern of higher highs and higher lows (uptrend) or lower highs and lower lows (downtrend). So by identifying the trend helps in making informed trading decisions and putting you in a better position to gauge to long or short the asset or to simply avoid the trade if there is no conviction after your analysis. You do not have to make a trade for the sake of trading.

Use technical indicators like moving averages or trendlines to identify the direction of the stock's trend. Trends can be categorized as bullish (upward), bearish (downward), or sideways (range-bound). Understanding the prevailing trend helps in making informed buy or sell decisions.

We should Identify key support and resistance levels where the stock price tends to bounce or reverse. These levels can be derived from previous highs, lows, or technical indicators like Fibonacci retracements.

When you're trying to buy a new security, TA will assure that you are not buying high, one of the cardinal faux pas in trading. If the security is at an all-time high, it is not the time to buy. Allow it to retrace to a level of support or dip in price supported by historical levels to allow you best entry into the buy.

Identify key support and resistance levels on the stock's price chart. Support levels represent areas where buying interest is expected to outweigh selling pressure, potentially causing price bounces. Resistance levels, on the other hand, indicate areas where selling pressure may outweigh buying interest, potentially leading to price reversals.

Utilize chart patterns and technical signals to assess the stock's performance. Common patterns include head and shoulders, double tops/bottoms, and triangles. Additionally, technical signals generated by indicators like RSI, MACD, or stochastic oscillators can provide insights into potential buy or sell opportunities.

Before making any investment decisions, backtest your trading strategies using historical data or paper trading to evaluate their effectiveness. Practice analysing charts and identifying patterns to gain confidence in your technical analysis skills.

Sometimes, we see new traders enter and become profitable early in the game. It could be due to luck and not skills. In my view, its better not to be profitable in the early stage of an aspiring trader as it can help reduce the overconfident bias. Only time can tell if one is skilled or competent. I often see young traders coming into the market but I seldom see old and profitable traders. They are the unique group who have honed their skills to become profitable not by luck but by ability, skills and painful experience learned along the way. In fact, one learns the most from losing trades not winning trades. Cheers and all the best.

Depending on one’s investment strategy technical indicators may not be enough. In our strategies we review technical and fundamental analysis to determine momentum, entry or exit points, trends, breakouts, and more. Some investments trade more on fundamentals with better earnings while others trade on horrible fundamentals but amazing technicals due to their high growth potential. Always understand what you are investing in, your timeframe to invest, and the pertinent data to review for that investment within the target timeframe.

Growth metrics. Just like an ice berg, 2/3s lies beneath the surface, therefore detecting the stock's drivers is imperative to understand the past, present and the market's forecasts