Why Charts + Sentiment?

Charts - Cannot lie

Easy!!! Huge institutions usually leave tracks on where they think the market is going: Volume provides clues as to the intensity of that trend. 

Volume

Volume is the number of shares traded during a time frame (e.g., hour, day, week, month, etc.). The analysis of volume is a simple but very important for the of technical analyst. Volume gives clues as to the intensity of a price move. 

Trend

Refers to the direction of prices. Rising peaks and troughs form an uptrend; falling peaks and troughs form a downtrend. A trading range is characterized by horizontal peaks and troughs. Trends are generally classified into major (longer than a year), intermediate (one to six months), or short (less than a month).

Sentiment - Crowd is usually wrong

Psychology! What is being traded is people, not stocks. People never change...most traders keep on making the same mistakes again and again. That is good for us!

Open Interest 

Open interest for options is very similar to shares outstanding for stocks. Open interest helps to gauge sentiment in the options market. The higher the put/call open interest ratio, the more negativity on the index or equity. The lower the put/call open interest ratio, the more optimism there is. 

Short Interest 

The number of shares that bearish traders and investors have sold short is an equity’s short interest. This data is issued by the major stock exchanges. When short selling the investor hopes that the stock’s price will decline, permitting a future repurchase of the shares at a lower price to repay the lender.