November 18, 2014
Lesson
Technical Analysis is to determine the price action is moving up, down or side way. In any timeframe, a price action consists of open, close, high and low. A big bar means the market is volatile when bar is small the market is calm, not much participation.
We use trendline, support and resistance to determine the current price action situation, and forecast what will happen next.
Some practitioners use two line for support and resistance or trendline, two lines to form a zone or channel. As for moving averages, some uses high and low to form a “river”.
So, we study, the price action caught between the zone, channel, or river.
See chart for more information, chart worth a thousand words. We shall discuss in the next posting on river (two moving averages) whether pointing up, down, when price action above and below the river.
Straits Times Index, STI November 17, 2014 Daily
STI is inside the upper band of Bollinger Bands, the index is at the resistance, the index has retested the same level, formed evening star candlestick. Many of these information suggest a bearish bias. For your own decision. See chart for more information.
Straits Times Index, STI November 17, 2014 Daily Chart
Thanks for visiting the site.
Moses
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