04th october,2011 Tuesday
Trendlines:While doing a deep study and analysis on the various indicators and oscillators,i came across these simple logical lines called as Trendlines.If a Novice to Technical Analysis,understands the concept of Trendlines and learns to draw trendlines with perfection,there is practically no need for him to rely heavily on all other technical indicators.That's the beauty of Trendlines!
A trend line is formed when you can draw a diagonal line between two or more price pivot points. They are commonly used to judge entry and exit investment timing when trading securities.
A trend line is a bounding line for the price movement of a security. A support trend line is formed when a securities price decreases and then rebounds at a pivot point that aligns with at least two previous support pivot points. Similarly a resistance trend line is formed when a securities price increases and then rebounds at a pivot point that aligns with at least two previous resistance pivot points.
Trendlines can be Drawn on daily,Weekly and Even Intraday Charts depending upon the trader/investor time horizon.
In the Given Below daily chart of Rel Capital,it can be clearly seen that the stock was moving in a rising trend touching the upward sloping trendline.Once this trendline was breached on the downside,the stock witnessed a steep fall.It crossed the trendline at the price of 520 and made a bottom of 320.
Trendlines:While doing a deep study and analysis on the various indicators and oscillators,i came across these simple logical lines called as Trendlines.If a Novice to Technical Analysis,understands the concept of Trendlines and learns to draw trendlines with perfection,there is practically no need for him to rely heavily on all other technical indicators.That's the beauty of Trendlines!
A trend line is formed when you can draw a diagonal line between two or more price pivot points. They are commonly used to judge entry and exit investment timing when trading securities.
A trend line is a bounding line for the price movement of a security. A support trend line is formed when a securities price decreases and then rebounds at a pivot point that aligns with at least two previous support pivot points. Similarly a resistance trend line is formed when a securities price increases and then rebounds at a pivot point that aligns with at least two previous resistance pivot points.
Trendlines can be Drawn on daily,Weekly and Even Intraday Charts depending upon the trader/investor time horizon.
In the Given Below daily chart of Rel Capital,it can be clearly seen that the stock was moving in a rising trend touching the upward sloping trendline.Once this trendline was breached on the downside,the stock witnessed a steep fall.It crossed the trendline at the price of 520 and made a bottom of 320.
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