Increased market volatility has presented the study of technical analysis as an indispensable tool for the investors. Smart usage of the technique can see the investors through these turbulent times with relative case.

Technology boom during the year 1999 and early 2000 and the subsequent bust have marked an era of change in the financial markets. Equity markets are transforming in the sense that globalization never before had its effects on these markets to such an extent, technology stocks will be dominating the trends in the stock markets and increased volatility is now the new order of the day.

The technology bubble of the year 1999-2000 did burst and got the concept of value investing right. But at the other end, value investors clearly did miss most part of the entire rally as well. The entire rally was euphoric, fundamentals did not justify the valuations almost since the early part of the rally, but it went on and on. The only tool then to ride the way up was using Technical Analysis. Again, identification of a topping out pattern clearly suggesting the exhaustion of the rally during March 2000 did also give the early signals to a technical whizkid. The alarm bells had started ringing and an unmistaken technical analysis had induced me to give a sell call on the entire technology sector during March 2000 (the month in which the tech boom peaked out) though it required a lots of guts to speak this to an euphoric crowd, which had dreamt of a never ending rally. The bearish call was carried out in a state edition of one of the leading financial publications under my regular column.

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