Candlestick chart is more understandable

In candlestick chart, we can easily see and compare the relationship between the open and close, the high and low of a stock price movement.

If it open low and goes lower but eventually close back up to form a long shadow line on bottom, that means the bottom has been tested and the chance is high that it will go up higher.

If it open high and goes higher but eventually close below open price to form a long shadow line on top, that means the top has been tested and the chance is high that it become the pivot point to go down.

Learn how to read candlestick chart and its pattern.
http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis

Support and Resistance

If the price breaks the resistance line, it will go up higher. If it breaks the support line, it will go further downward.

Trading rules

Once you understand how to read technical analysis chart, you should come up with your own trading strategy. This is a must in order for you to survive in this brutal market. You must have systemic rules, rules for your trading game that you must follow. These rules tell you the best time to enter or exit a position from technical analysis chart.