Technical Analysis deals in probabilities and never certainties.
Markets rarely discount the same thing twice.
Technical analysis is applicable across all time frames, from minutes to several years.
Longer the time span of the trend the easier to identify reversal.
Following factors influence Price :- Physiological , Technical, Economic and Monetary.
Transition between rising and falling trend is usually signaled by price patterns.
Volume usually leads price.
Technical signal often fail more if it is taking in opposite direction to the main trend.
Trend-lines are dynamic areas of support and resistance.
Violation of the trend-line with sharp angle of ascent or descent is more likely to results in a consolidation than a reversal.
Significance of Trend-line is function of its length, number of times it has been tested (touched) and the angle of ascent of descent.
Oscillator's behave in different ways depending on the direction of the primary trend.
Divergences only warn of a weakening or strengthening of technical conditions, they do not represent actual buy or sell signals
Greater the number of negative divergences the weaker the structure and vice versa.
When Trend-lines on price & oscillator's are violated simultaneously signal is stronger.
Candlesticks given greatest emphasis on the opening and closing prices of trading range.
Support and resistance levels represent intelligent places for anticipating trend to reversed.
Time is concerned with adjustment as longer the trend takes to complete, greater is its logical & physiological acceptance greater the necessity for prices to move in opposite direction and adjust accordingly.
Greater the number of securities moving in the same direction, the strong the trend.
It is level of enthusiasm of buyers or sellers that determine the course of prices.
from "Technical Analysis Explained" by Martin J. Pring.