Using charts effectively

[lordbodom]

What is the best way to read charts to buy/sell. I am new to this so dont have much idea. I read up on stochrsi and wanted to use that indicator for a try. The line was below 20 which was a buy signal, so i did buy some LTC at 33.9, price continued to go down. Now the line is obove 80 and still below my buy price.

What did i do wrong? or are these indicators just not trustworthy and its all come down to luck?