Take a look at the daily, weekly, and monthly charts.
Happy trading
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Are These Stocks Naughty or Nice?
5 years ago
Friday 20 February 2009
Did the recent sell-off catch you unaware?
Prior to this week’s sell-off the market had been moving within a range. However, when the Dow Jones index closed below the 800 level last week, a strong signal was given. A psychological support level was broken on the weekly charts. If you have a good look at the weekly chart, you’ll notice that even though the index had dropped below 8000 a couple of times, it always rebounded and never closed below it. The 7400 level on the daily chart is another significant level in that it represents a one year low. Statistically, if an instrument makes a new one year low it tends to continue the downward movement. If the market fails to hold this support level, there is a possibility that it would head towards the 7000 for support.
Take a look at the daily, weekly, and monthly charts.
Happy trading
Take a look at the daily, weekly, and monthly charts.
Happy trading
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1 comment:
A chart showing an instance when a method might have worked is NOT a method. While I agree with the poster pointing out significant support, for what it's worth, my experience has taught me the following lessons. You cannot follow a system unless you are it's creator and have tested it extensively. When systems suffer their eventual adversity and drawdown period, and they all do, it will tests your metal and "stick to it ness" to no end. To stop trading in these tough times usually always means ending in failure. To be the developer, quant and creator on the other hand is the only way to get this strength. Get yourself a good porfolio level backtesting engine and a high quality historical dataset like from these guys www.forextickdata.com and begin your journey.
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