November 1, 2014
Before the price can go lower, it has to goes up first! So, at some point of high, the price will end up low?! Remember stock prices are move in zigzag; never a straight line.
The law of gravity: What goes up must also come down.
Lesson
In trading, you do one of the following three things, 1) trade counter trend, 2) trade trend following, or no trade do nothing. Be it counter the trend or following the trend, you need to start with a trend; no trend no trade. Thereafter, you decide to follow or counter it.
But, remember follow or counter you make money only when the trend do not go against you!
In technical analysis (TA), we study the chart and make our trading decision, Because the price and time chart consist market emotions, the news, and all other information.
Singapore stock benchmark, Straits Times Index, STI October 31, 2014 Daily
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Read other postings:
1) Stock Screener, Where the Stock Market Is Headed Today
2) Thought and Notes of Trading – C52, S61 and S53
3) Picture (Chart) Worth a Thousand Words! Chuan Hup, C33
Thanks for visiting the site, AmiBrokerAcademy.com.
Moses
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