- Did you have any idea the chart of YHOO looked this good? I sure wish I was invested in it since the beginning of the trend... But the reality is I didn't see the beginning of the trend.
- Every circle (elipse) is the beginning of a trend or a confirmation of the trend. It is also a test of weather or not the trend will continue. It can be a great place to get long the stock (if the trend continues). It can be a great place to get short the stock (if the trend breaks).
- UT 1 is the longest and flattest "Up Trend" line. UT 2 is the next longest but steeper "Up Trend" line. IMHO, it is always a good sign when a UT 2 is created. It shows increased strength and a faster advance in the share price. Just to be brutally honest, there are many trend lines not shown on the chart. But I like to focus on what I feel is important at the moment. I also like a clean chart.
- I have come to the realization that you can't always catch the beginning of the trend because you can't watch all stocks all the time. A battle I used to have with myself was the "Is it too late to get in?" battle. This chart and many others will reaffirm the answer. Which is "No one knows." If you find a trend that is working then maybe try jumping in. The trend might just last for another year. Or more :) Or the trend might break within a few days.
This is a Daily chart of YHOO
No comments:
Post a Comment