<<One thing that I believe about stocks is that when one random stock goes up there is a better than 50% chance that any other random stock will go up,(same time frame assumed). Also if one random stock goes down, then there is a better than 50% chance that any other random stock goes down
Am I correct? >>
I am unable to answer a question using the word random , with stocks. As I see it, everything with stocks happens for a reason. We're dealing with words like money, profit,loss and future, it's not random.
[The first downside target is 10 bucks. Thats a little bit of round number psychological support and the chart shows a little congestion there.
Put simply, here is a lot of profit to be collected here and the chart shows the stock has rolled over. ]
Your first paragraph makes no sence to me at all. The second one I can understand, and it sounds reasonable to me.
To me chart reading is a little bit like a dance. As long as most of the dancers "know the steps" you can invest with a certain amount of confidencec regarding stock price trends, in the short term. In other words, If everyone is monitoring the Bollinger band, then the Bollinger band becomes real. Would you agree, or am I still too shallow?
A falling stock invites buyers to take a look. Those buyers likely think the stock won't go under a round number like 10 , in this case, so some of them will buy it at 10 and the reason was only psychological. So it's called psychological support. Jan. 23 the stock traded sideways a while before it gapped up on the 24th. That action on the 23rd is called congestion. The starting point of a gap by definition is support. So add the congestion and the gap the chart says support in the 10 area.
Add the notion of all technical indicators to the Bollinger Bands and I'd answer, a qualified, yes. I'd put it this way: if someone knows technical charting quite well, he dramatically increases his probability of success buying and selling stocks.