If we notice Friday's resistance line (the lowest red line) looks to be new support. If you look at the highest red line that is now resistance. If those two trend lines stay in tact we should be able to go off of those lines for an entry and an exit price. If the new support line fails we should see that become resistance again. If it breaks past the 1st red line which is now resistance it could act as support.
The last couple of days have been the 1st time I used daily trend lines but already I can see the importance of using these lines.
Imagine this, you are looking for an entry into a stock. You see the stock hitting the support day trend line, the daily chart is hitting a support line and the level two is stacked on the bid. You now have 3 indicators telling you to buy this stock! You have just minimized your chance of loses and greatly increased your chance of profits into your favor! The same thing can also be done when looking for an exit point in a stock by looking to those three indicators.
That is just something I wanted to share really quickly. Take some time to practice marking out daily trend lines. I will write a new blog as talked about yesterday Tuesday night. Enjoy the trading day!
Volume is dead bro. Buyers are losing interest.
ReplyDeleteI agree. However, just because it has low volume doesn't mean you can't use the time to learn trend lines. As seen today they are still intact and can be used.
DeleteLike most, were just waiting for the next big play. Mine as well use the time in between to learn.