Trend Following on Charts
Technical Analysis of Stock Prices
Authors
For following the trend, the simplest procedure is to draw an upward sloping line which touches the bottoms of two or more consecutive reactions. This will give an upward trend line.
If one can draw a downward sloping line that touches the tops of two or more consecutive rallies, it will be a downward trendline.
A sharp breakdown of the trendline will dramatically indicate the change of trend.
Is it an infallible technique. No, there is no infallible method in judging movements in prices. But a method is better than no method at all. When you are fascinated by the fluctuations in prices and the stories neighbors who made millions already, you need a method to enter the business of stock price forecasting and trading.
No comments:
Post a Comment