Archive for January, 2009
Read Resistance Lines
Saturday, January 31st, 2009This week on the XAO there was a rise of 172 points over all. Is this go to the upside likely to continue? Let’s take a look at what the stock chart chart is showing us. Tuesday was a bounce off a support after downward momentum failed to continue on from Friday. As the week [...]
Enter Stock Position
Tuesday, January 27th, 2009Many systems available out there, identify patterns in charts and the break out days. Last week CSL had an ascending triangle with a breakout day, as shown in the chart below. (click on images to enlarge)It seems like the boat has already sailed when a stock has went so much before entering a position. What [...]
XAO Downtrend
Monday, January 26th, 2009As expected the XAO continued down this week. Monday was an up day that retested the resistance made by the flag. Once this line was respected the XAO spent the rest of the week heading down. There is now 3 consecutive Lower Peaks (LP) indicating the sellers now have control. There is strong weekly support [...]
Peaks and Troughs Trading
Tuesday, January 20th, 2009At times a stock can travel sideways, not really making any sort of significant price moves. As a small term trader, we like looking at around 3 months worth of data to give us an thought of the direction of the stock. Peaks and Troughs is a very well loved and successful way of determining [...]
Bearish Down Day
Tuesday, January 20th, 2009Last week’s weekly wrap on the XAO identified a possible Bearish Flag pattern. Let’s see what this week trading has done. Below is a daily chart of the XAO. Highlighted is Thursdays trading bar and it has clearly broken through the bottom of the flag that has been acting as support. It was a Bearish [...]
Successful Trade in the Planet Wealth Trading Room
Monday, January 19th, 2009Another successful trade in the Trading Room this week. We found a high probability trade going against the overall trend and had a brilliant return from it. Let’s take a look at ways we can trade a stock safely in the opposite direction to the overall trend. Currently SUN has been in a down trend [...]
Fibonacci Trading
Tuesday, January 13th, 2009This week the XAO touched and retreated off a significant Fibonacci level suggesting a possible flag formation. Flag formations (definition discussed in BHP post 17/11/08) have a higher rate of success when the flag flies at the 50% Fibonacci level. The last major higher on XAO was at the beginning of November and this was [...]
Stock Market Entry Signals
Thursday, January 8th, 2009Trend lines are more significant the longer they have been validated for, so when looking at a stock to trade shorter, it is vital to look at the long term picture as well as small term. CPU shows us a fantastic example this week. Tuesday could have been an entry signal for a long position [...]
Trading in the Holiday Season
Sunday, January 4th, 2009Pleased New Year Traders! This week we will see the increase of volume on the market with large fund managers and institutions coming back on board from the holiday season. With low volume over the last couple of weeks, we have seen alot of consolidation on most stocks in the top 20, which is all [...]
