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Does Warren Buffet know technical analysis?

Does Warren Buffet use technical analysis? The answer is: No. I have not read anything that suggests he takes the help of charts for his investing.

How many Warren Buffet type of investors exist in the world? I think, not many. Therefore, it is not neccessary to compare our work with that of Mr Buffet.

Technical Analysis for Long Term Investors

An investor can benefit from the use of technical analysis for her investment decisions.

Long term charts can identify many patterns.

(a) Stocks in parabolic rallies. You should wait for corrections before entering.

(b) Stocks in trading range. These are stocks you may wish to track on lower time frame charts for breakouts.

(c)  Stocks in deep downtrends. These stocks should be avoided till they begin to form bases, or succeed in tests of support.

(d) Stocks in visibly defined uptrend. Such stocks have a pattern of higher highs, higher lows. These are the stocks that you will be investing in.

How about exits?
That requires another blog post.
And, a list of stocks?
Well, you need to do yur own homework. But, I will gladly offer my comments on any ideas that you have.

Cheers.

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