Posts
I read somewhere before that a trader in the USA made a lot of money over the years using only trendlines in his technical analysis. Yes, only trendlines. Nothing else.
This hints at the importance of trendlines and how they have an indispensable role in anyone's charting efforts. After all, don't we hear people saying stuff like "the trend is our friend" and "don't go against the trend"? The word "trend" keeps popping up in technical analysis.
So, we must know how to recognise trends if we want to improve our chances of success trading in the stock market.
If we look at Marco Polo Marine, it is obvious that the downtrend was broken towards the end of 2012 and it is now on an uptrend.
Drawing trendlines, we would see that its current uptrend is in two parts: an earlier trendline with a gentler gradient which I have labelled "T2" and a later trendline with a steeper gradient which I have labelled "T1".
Drawing these trendlines, we know where are the price supports which must hold for the uptrend to remain intact. Breaking these supports would possibly be a sell signal for some. Short sellers could also come in to push the share price down further.
For others, it would represent opportunities to load up at cheaper valuations but we want to load up closer to supports. Well, at least for me, I think that buying at supports in an uptrend is the way to go.
Today, my overnight buy order at 41c was filled.
Related posts:
1. Marco Polo Marine: Negative divergences.
2. Recommended books for TA.
Bloggy Award
14 comments:
You are decisive AK. I am still observing wether the support will hold before buying. Still too volatile to make decision. But totally agree with you that decision has to be made at border of trend line, to buy, sell, hold or pass...
Hi seefei,
I can only do what I feel is right. ;)
"Today, my overnight buy order at 41c was filled"
So was mine! :)
GLT us!
Hi JCK,
Another chartist in our midst? ;)Hahaha.. Yes, GLT us indeed. :)
Hi AK,
Can I ask how do you do a Overnight Buy? Paiseh... have to ask this question.. and I know you won't mind answering.. :)
Hi Anic,
Enter your BUY order the night before. It will be put in the BUY queue in the next trading day. :)
Thanks AK.
Will try out.. like the idea... no need steal bone (malay proverb: curi tulang) during the day..
Hi Anic,
Is that the same as "eating snake"? ;p
I told a friend who bought capitaland on the same day if he had bought Marco polo marine he would have earned 8 cents today. MPM would have given him a much superior return.
I am queueing at 41 tonite hahaha...
:) yes..
poor snake... :) such bad name..
Hi seefei,
I think the buy queue at 41c will be very long. Hahaha... ;p
Hi Anic,
And the Year of the Snake is just round the corner too. We should be nicer to the reptile. Only once in twelve years, after all. ;p
greedy me will try at 40c... With Citi you can place standing orders for 2 weeks, so no need to watch every day...
Hi Jay,
In that case, maybe I should try 39.5c next. hahahaha.. ;p
Post a Comment