Technical Analysis is the forecasting of possible future movements of price based on the past or historical records. Like other forecasting methods, it is using the past to determine the possible future, although the result may not be 100% accurate but it helps investors to anticipate what is the possible price movements ahead.
Technical Analysis is used by many investors and fund managers. It helps them on determining the trend of the market and individual stock, as well as, to determine the timing for entry and exit in their investment.
Friday, March 2, 2007
Example of a Bullish Sign for Entry
This is a good example of a chart with strong bullish signal on Swissco recently. The followings are the signals from the indicators that combined together to form a real bullish sign:1. MACD Positive Divergence.
2. MACD crossover zero center line.
3. Price line break out of the top resistance line of the triangle.
4. Volume increase together with the price.
A good entry point will be just after the breakout is confirmed.
Subscribe to:
Posts (Atom)