Tuesday, October 14, 2014
Oldtown : Nice downtrend
This post is only for newbies and those interested to learn.
Learning Corner : Down-trending stocks
To explain lower high, lower low ... a sign of DOWNTREND for charting, I am using Oldtown as an example.
It is obvious moving lower and the red-line is our 20MA. As the chart is below 20MA, we can say that it is downtrending. But this stock, Oldtown shown rebounds each time it goes lower. Yet, the rebound(HIGH) is lower than the previous one. While it goes lower, it creates new low.. and the low is lowering. We called that lower-low. Some just put is short as LH and LL.
It is a NO to trade this kinda stock and also not good for technical rebound. We could only wait for the stocks to go sideway/consolidate .... stay flat for a while and see the bottom. Then, we could only consider entry if it moves up(reversal) ... perhaps.
I have created a facebook group for learning purposes. It is NOT for anyone to ask which stocks to buy or sell. For that, you may want to join my stock-watch closed group. Yes, I prefer my own private space.
I am willing to teach newbies ... and novices. As I am still in my own learning stage, I never claim myself as sifu or master. Those judgmental ones giving me names, titles and such, that is their rights.
Be open and we will learn more ...
Note : I am very excited as many in reversal soon. Be greedy when others in fear? Easier said than done.
Ok, got to prepare for my tonight's e-meeting about ''technical rebound''.