MotleyFool contributor NukeJohn developed a simple technical analysis methodology he has been using successfully. It concentrates on a few simple measures of the supply/demand balance for a company's stock, mostly change of momentum indicators. It does not rely on any chart pattern recognition such as cups and handles, shoulders, etc.
The requirements for a company's stock to pass NJTA are that all of the following occur on one day:
These indicators are easy to obtain at Yahoo's Technical Analysis page for any given stock. Other resources are broadly available.
Generally stocks will pass the HG-Type Screen for some number of weeks and then fall off again. During the time a stock is on the passing list, the NJTA requirements may only be met for a few days, maybe only one day or in extreme cases only for part of a day. The purchase decision should be made only when all requirements are met: passing the HG-Type Screen and passing all NJTA criteria. Essentially the HG-Type Screen produces a watch list and the final decision on buying is made when a watch list stock also passes the NJTA criteria.
When a stock stops passing the HG-Type Screen, I will keep it on the watch list for another month. If during that time the NJTA parameters are satisfied, I will still buy the stock.
No strategy yet exists. If there were one, it would most likely be some combination of price exceeding the screen's max price and/or most of the NJTA criteria failing in reverse and/or a major breakdown in company fundamentals.