Archive for February, 2009
« Previous EntriesSupport and Resistance
Friday, February 27th, 2009Support and Resistance lines taken from a weekly chart are considered to be stronger than medium term daily support. This is why taking a small term trade off these support levels give higher probability trades. Here is a case scenario built on ORI. Long Term trend is down. Medium term trend is down. Small term, [...]
Succesful Trading Using Chart Signals
Friday, February 27th, 2009Waiting for confirmation of a chart’s signals is crucial to successful trading. Though a chart may show high probability signs of breaking one way, it is still possible for it to break in the opposite direction. WOW is a brilliant example of the above happening. Technically, the charts have been bearish on WOW for some [...]
Short Term Trading
Friday, February 27th, 2009Small term trading is generally my main focus in this blog, but the main techniques used to analysis small term trades can be applied to longer term trades. Peaks and Troughs are a reliable way of picking momentum change in a stock. CSL has had a momentum shift on the weekly chart. Higher Troughs [...]
Weekly ASX Stock Wrap
Sunday, February 22nd, 2009s expect, this week on the XAO was a down week, moving a total of nearly 150 points. Friday closed slightly below a small term support line but there is a weekly support line just below. When looking at the daily chart it was an obvious down week but looking at the weekly chart, it [...]
Triangle Trading Pattern – Tesltra
Thursday, February 19th, 2009TLS has formed a Symmetrical Triangle between two major support and resistance lines. Is there any way to tell which way it may break? There is never any guaranteed way to tell what a stock is going do exactly, this is why stacking the odds in your favour and waiting for a confirming signal is [...]
Put and Call Options Basics
Wednesday, February 18th, 2009If you buy a Call option over a stock, it means you have the right (but not the obligation) to BUY the actual stock at an agreed price on or before an agreed date. If you buy a Place option over a stock, it means you have the right (but not the obligation) to SELL [...]
Trading Patterns
Wednesday, February 18th, 2009WDC has been in a strong down trend since September last year. At the beginning of the year the stock took a sharp fall away from the weekly down trend. Once WDC reached $10.10 it found strong support from past trading patterns, bounced and has now come back to touch this support again. This [...]
Gapping Stocks
Monday, February 16th, 2009In previous posts I have spoken about gapping in a stock. Stock, as a general rule, go back and fill in any price gap that has been made. ORG gapped from $10.55 to $14.00 in May last year. After significant sideways movement with a $15.00 support holding it up, lower peaks (LP) started to [...]
Stock Market Sideways Movements
Saturday, February 14th, 2009Lately the XAO has been climbing up on the daily chart, which could lead some to believe the market may be turning. The weekly but shows us a different picture. The last 4 weeks have been a sideways movement. Now it is clearly at the top of a down channel. The higher probability go would [...]
Renting Shares For Income in the Stock Market
Friday, February 13th, 2009– First of all, let’s cover what we mean by this phrase. We use the term ‘Renting’ our stocks, because everyone understands this in terms of property. We buy a house or apartment, we become a landlord, and we rent it out to someone else. We receive money (rent) over a designated period. Well, we [...]
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