DAILY STOCK UPDATE #60
For the past few days, our Daily Stock Updates are about Sideways Trend and Moving Average.
Now, let me share with you the SUPPORT and RESISTANCE.
What Is a Support?
It’s the price range that serves as the potential entry point.
It’s the price range where there’s a lot of buyers.
Buy at support level and near at support level.
What Is a Resistance?
It’s the price range where there’s a lot of sellers.
It’s the price range that serves as the potential exit point.
Sell at resistance level and near at resistance level.
Let's Review the DSU # 58-59.
You can also trade in a sideways trend.
What Is a Sideways Trend?
no dominant trend
not uptrend nor downtrend
you can use a Horizontal line to plot the support and resistance (horizontal price movement)
you can trade in sideways by using Candlestick Pattern, RSI, Breakout and Breakdown as confirmation
you can buy near the support and sell near the resistance
What could potentially happen in a sideways trend?
It could be an indication that the stock is consolidating before it potentially go downtrend (bearish) or uptrend (bullish).
What Is a Moving Average (MA)?
this can be used to determine the support and resistance as well.
this determine the stock’s trend direction however, it’s based on past prices.
you can use 2 MA (short and long) to confirm if the stock would potentially go up (when the 2 MAs crosses, pointing upward) or down
you can use a combination of Moving Average (MA) and Exponential Moving Average (EMA)
The Exponential Moving Average gives more weight to recent stock prices.
If the 2 MA’s crosses pointing upward, that's an indication that the stock could potentially go up.
But, remember that...
You still need to analyze the candlestick patterns
Check the Volume
You may want to check the RSI as well
Kung alam mo ng i-combine lahat ito mas makakatulong ito sa pag identify ng BUY and SELL signals mo based on your goals.
Practice po ang kailangan.
Pwedeng magpractice using VIRTUAL TRADING sa Investagrams.
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