Some of the terms I use to describe may not be familiar to you. Some of the common terms I'll use are listed here.When I mention specific patterns I'll explain them in the analysis.
MA: Moving Average. This is the average price over a certain period. I use the 34 period of high low and close prices. I also use the 100 period of closing prices.
River: I use river to refer to the three 34 period moving averages. The river acts as a thick line of support or resistance. For a break to be considered valid I require it to either break the top of the river from below or the bottom from above.
TP: Take profit
SL: Stop-loss
Resistance: Just as the name implies this prevents a stock from moving up. Resistance can come from many things including moving averages, old peaks, old troughs, and trendlines.
Support: Supports the stock from moving lower. It comes from the same things as resistance.
Trendline: Defines the trend. It is made by linking highs and lows. Provides resistance/support. Trendlines are also used to create patterns such as triangles.
No comments:
Post a Comment