My Way of Technical Analysis
By admin on January 21st, 2009
There are a lot of chart patterns that you can learn out there. There are so many of them. Some which I think is well known are:
- Hanging man
- Shotting star
- Inverted hammer
- Bullish and Bearish Engulfing
- Bearish and Bearish Harami
- Pearsing Line
- Dark cloud
- Abondoned Baby
- Three White Soldiers and Three Black Crows
There are so much of them. How would you be able to master all of them? Trading should be simple right? They should be, so I created my own rule, which is quite conservative. Here are they:
Enter Buy position:
- Break resistance.
- Bullish Engulfing, when the white candlestick body is much bigger then the previous black candlestick body.
Close the Buy position:
- Price is near the next resistance. I better quit near the next resistance because you wouldn’t know what will happened. It’s a 50:50 change, so I better close my position.
- Candlestick closing price is lower than previous candlestick closing price.
- Long upper tail, because this is signs that traders are pushing price lower.
Enter Sell position:
- Break support.
- Bearing Engulfing, when the black candlestick body is much bigger then the previous white candlestick body.
Close the Buy position:
- Price is near the next support. I better quit near the next support because you wouldn’t know what will happened. It’s a 50:50 change, so I better close my position.
- Candlestick closing price is higher than previous candlestick closing price.
- Long lower tail, because this is signs that traders are pushing price higher.
January 23 trading - Invest in stocks, option, forex
[...] 8 trades. Do you think that is lucky?? No!!! Luck will come when you are prepared. Learn from my forex strategy. Remember forex trading is very dangerous. Do it on your own risk. I’m not responsible for [...]