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Practice Practice Practice
Practice makes perfect! We know Moving Average is a powerful visual tool to spot trend and bullish or bearish bias trending. As a trader to new to sharpen your tool. How to sharpen? Practice by study the chart to identify bullish or bearish bias trend. Practice to look for support and resistance. Practice to confirm the pattern is completed and ready to enter a trade!
Image taken from Internet!
Applied Materials Inc
From chart, what is your conclusion? Buy or sell? The price has retraced back to River and Resisted by real.
Let’s look at the chart again, this is a twelve (12) daily data chart. You can see the first double top; fail double top. Why? Double top is a signal of trend reversal; change of trend direction. From up flow to become down and continue to stay down for sometime. But, you see the trend get higher.
The new double top has pull back and retest the neckline and continue the south. At least, this provide some clue to be bearish. Now, the second time price retrace back to the moving averages, such as River. The price also get resisted by River. The conclusion at this point is very much bearish bias.
You may try selling begin with a small trade to test the bearish trend. Have fun!
June 5, 2015 Applied Materials Inc
Thanks for visiting the website.
Moses
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