June 26, 2018
Thanks for visiting the site.
Moses Stock Stories – Thinking Out Loud
One of the fundamental approach in trading is to buy support and sell resistance. It sounds simple, buy support sell resistance. If you were are asked ten traders, each will have different opinion on their respective support resistance. Some trader will reference the most resisted top as resistance, or most supported low as support. And some will take each turning of the top as resistance or the turning of the bottom as support. They are all correct.
A more consistant or scientific ways is to use a week or month or year as a reference. We use to use month, quarter or year as a reference. So, we find the month, quarter or year high and low as the month, quarter or year resistance and support.
See the following example, we check the most current price action and look left to find the low is lower than which month low. See example of SSE Index, 上海证券交易所综合股价指数.
上海证券交易所综合股价指数 SSE Composite Index Index Charting
Let’s studied the China 上海证券交易所综合股价指数 SSE Composite Index, see chart, 上海证券交易所综合股价指数 SSE Composite Index overall is bearish when your reference to the last six months. See chart, picture worth a thousand words. Manage your risk.
The current low is lower than twenty three months low.
See the price action on the potential movement. Manage your risk.
June 22, 2018 上海证券交易所综合股价指数 SSE Composite Index Charting
Moses
AmiBrokerAcademy.com
Disclaimer
The above result is for illustration purpose. It is not meant to be used for buy or sell decision. We do not recommend any particular stocks. If particular stocks of such are mentioned, they are meant as demonstration of Amibroker as a powerful charting software and MACD. Amibroker can program to scan the stocks for buy and sell signals.
These are script generated signals. Not all scan results are shown here. The MACD signal should use with price action. Users must understand what MACD and price action are all about before using them. If necessary you should attend a course to learn more on Technical Analysis (TA) and Moving Average Convergence Divergence, MACD.
Once again, the website does not guarantee any results or investment return based on the information and instruction you have read here. It should be used as learning aids only and if you decide to trade real money, all trading decision should be your own.