Head and shoulders
Another oft used term chart is the head and shoulders.
No - not the dandruff shampoo - but another graphic sell sign.
As you see below, the share price reaches a peak, falls and then rises above its former peak, only to fall back again.
The first and third peaks are the shoulders, while the second (and you have to really squint here) is the head. (see below)
Essentially, when the price falls from right shoulder and breaks through the neckline, it is time to sell.
At this stage I can see you are lost.
Suffice-it-to-say, charts must be watched carefully and are better suited to short-term traders than long-term investors.
And not even their biggest fans would argue that charts alone provide all the investment answers.
They should always be used to complement other valuation methods.