In above image...
look at these.....
long downtrend.... watch and watch only.
crazy buy---- alert. trend may reverse. high volume. eureka.
hibernation.... buy here.
rally..... enjoy the first rally. u can sell at the top of this rally if u have 'little patience'. or hold longer for another rally if general index looks good.
sweet spot or 1st higher low= sign of trend reversal. volume also big in the crazy buy which is a sign of 'real entry' by big men.
pullback..... hold tight.
pivot.... buy again when u see the pivot. pivot is visible after few days.
pullback seems over. wait for another rally.
yes. another rally found. note, this one is stronger than the first rally.
u can sell at the end of this rally. u don't know, how many rally will come. wait for pullback and pivot. but in this case, this stock gone to hell=downtrend after the second rally.
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you can buy at stage1/consolidation phase/flat zone (shown as a box). this is safest entry choice, but time consuming. Note, this flat zone is not actually flat, it is rather slowly falling.
you can buy at the w-pattern, or sweet spot or first higher low. this is the point of trend reversal. good entry situation.
then enjoy the first rally.
when rally complete, it started to fall. u can sell out, if the market is not so good. u can hold for 2nd or 3rd rally if market is good or uptrendy. you can buy again when the first pullback is over.
here price may consolidate or go up again without delay. in this example, small consolidation was visible (not shown here). the next rally was so big!