Perhaps you've been seeing a lot of graphs that doesn't make sense to you. We'll let's take a look on what a trendline is.
See the chart below. The long red line is called the trendline. Just draw the line from the lowest point to the next lowest point.
Just keep on plotting the two lowest point and you will master the trendline. Then, compare it against the trendline of your stockbroker if it is correct.
Just keep on plotting. Notice that there are no prices that go beyond the trendline. Practice makes perfect.
Obviously, what I have illustrated above doesn't capture the essence of technical analysis, but at least we won't be rattled when we see a trendline.
Recommended readings:
http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:trend_lines
http://daytrading.about.com/od/trendlines/ss/DrawTrendLineUp.htm
See the chart below. The long red line is called the trendline. Just draw the line from the lowest point to the next lowest point.
Just keep on plotting the two lowest point and you will master the trendline. Then, compare it against the trendline of your stockbroker if it is correct.
Just keep on plotting. Notice that there are no prices that go beyond the trendline. Practice makes perfect.
Obviously, what I have illustrated above doesn't capture the essence of technical analysis, but at least we won't be rattled when we see a trendline.
Recommended readings:
http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:trend_lines
http://daytrading.about.com/od/trendlines/ss/DrawTrendLineUp.htm
No comments:
Post a Comment