LOOKING AT THIS CHART WE CAN SEE THAT A STRONG AREA OF RESISTANCE HAS JUST TURNED SUPPORT
PRICE HAS CROSSED THE MOVING AVERAGES AND THE MOMENTUM NOW LOOKS TRADING ABOVE THE 50,100,200 MA
SO WHAT ABOUT FIBONACCI ? FROM THE OVERALL DOWNTREND WE HAVEN'T YET RETRACED TO A FIBONACCI LEVEL A 0.382% RETRACEMENT COULD BE OUR FIRST TARGET (ALTHOUGH WE COULD EXPECT MORE JUDGING OFF PREVIOUS REVERSALS) ARE THERE OTHER LEVELS OF RESISTANCE IN THIS AREA? YES OUR TARGET IS JUST IN RANGE OF A GOOD AND .
FROM THE CURRENT PRICE PATTERN WE BROKE THROUGH RESISTANCE AND RETRACED 0.618% AND BOUNCED OFF THE NEW SUPPORT, LOOKS TO ME WE COULD HAVE AN COMPLETION WHICH WOULD COMPLETE AT 1.272% RIGHT ON OUR 1ST TARGET POINT THE 0.382% MARK
PRICE ACTION DO WE HAVE AN ENTRY - I WOULD SAY YES WE HAVE CONFIRMED THAT THE MOMENTUM IS NOW AND WE HAVE A PATTERN WE CAN ENTER AT THIS LEVEL.
CAN WE CONFIRM WITH INDICATORS ITS NOT COMPULSORY BUT JUST LOOKING AT THE WE HAVE GOOD CROSS ON THE SIGNAL LINE
- WE HAVE HAD SOME HIGH LEVELS COMING INTO THIS BOTTOM AND HAS NOW BEGUN TO DECLINE THIS COULD ALSO CONFIRM WE ARE GOING UP HERE
FOR OUR STOP HERE ON THIS TRADE TO CONFIRM WE HAVE A GOOD SIGNAL WE CAN USE THE LOW OF THE PREVIOUS DAY IF WE GO LOWER THERE OUR SIGNAL WOULD BE NO GOOD
THERE ARE MORE POINTS I WOULD LIKE TO CONSIDER BUT I'M OUT OF TIME
SO HERE ARE SOME BASIC GUIDELINES I USE BEFORE TAKING A TRADE
What stage is this stock in?
Is this stock in an uptrend or a downtrend?
Is the stock at the beginning, middle, or end of the trend?
How strong is the trend?
Where are the trend lines?
What wave is this stock in?
What do the moving averages tell me?
Was there a breakout recently?
Is the chart "smooth" or "sloppy"?
Are there any chart patterns?
Are there wide range candles in the direction of the trend?
Are there any gaps in the direction of the trend?
Are the pros selling strength or buying weakness?
Where are the areas?
Do we have any divergence?
Is this stock at a Fibonacci level?
What does tell me?
Price action do we have confirmed entry?
thank you ,
i have been told my r& s are good , but using the line @ where the support or resistance started cleared up a mess and shows where it started for quicker reference