As the price action moves further away from the trend line (green), it will over time either
moves sideway before touching the trend line and goes up again. Or, if it moves too high up , it can also moves down (correction) , touching near or at the trend line and moves up again.
Lesson learnt - if you want to buy, buy it near the trend line.
The challenge most faced is when we look at the price today, we may not be so lucky to have the price at the trend line and we lack the patience to wait for it to retrace. Or are too afraid that the bullish train might run off without you.
From past experience, I had that encounters, only saved by relatively high SL (meaning higher risk, lower rewards ratio),tying up of capital and more importantly, having to ride the short term emotional roller coaster of ups and downs.
Is this necessary?
That is why the longer time frame like weekly and daily chart comes into play. IF the bigger time frame is showing a bullish trend, then the short term volatility in the shorter time frame like 1H or 4H matters lesser to you if you plan to hold for longer term. But if you are an intraday trader, enjoying the ins and outs and have the skills to do so, then this chart might be helpful. Remember, price moves in zig zag motion so catching it at high level would means selling at higher level to make a profit. Think like a businessman, always make a conscious effort to buy low and sell high. Ya, analysts out there are shouting DJI can go up to 5000 or beyond. But when ? It is anyone guess and unless you have lots of cash to burn and plan to hold long term, then your buying price and when you enter can be a skill to acquire.
moves sideway before touching the trend line and goes up again. Or, if it moves too high up , it can also moves down (correction) , touching near or at the trend line and moves up again.
Lesson learnt - if you want to buy, buy it near the trend line.
The challenge most faced is when we look at the price today, we may not be so lucky to have the price at the trend line and we lack the patience to wait for it to retrace. Or are too afraid that the bullish train might run off without you.
From past experience, I had that encounters, only saved by relatively high SL (meaning higher risk, lower rewards ratio),tying up of capital and more importantly, having to ride the short term emotional roller coaster of ups and downs.
Is this necessary?
That is why the longer time frame like weekly and daily chart comes into play. IF the bigger time frame is showing a bullish trend, then the short term volatility in the shorter time frame like 1H or 4H matters lesser to you if you plan to hold for longer term. But if you are an intraday trader, enjoying the ins and outs and have the skills to do so, then this chart might be helpful. Remember, price moves in zig zag motion so catching it at high level would means selling at higher level to make a profit. Think like a businessman, always make a conscious effort to buy low and sell high. Ya, analysts out there are shouting DJI can go up to 5000 or beyond. But when ? It is anyone guess and unless you have lots of cash to burn and plan to hold long term, then your buying price and when you enter can be a skill to acquire.
Comment:
up , up and away.......
