Tuesday, August 26, 2014

Small Studies for Trading and Life - $AAPL

*****When trend lines and channels get hit, it's a signal to watch for a reversal.  It may reverse for only a couple of days or it may head for the bottom of the channel.  Therefore it's important for a trader to mark those support lines and heed them.


Happy Trading, Living and Dancing

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Shane said...

Hi, how did you draw the support lines? How do you determine the specific line?

Anni_V said...

Shane, using $AAPL chart above as an example, find where the tops, hesitations occur most often over time. These tend to be your support or resistance levels where the traders may buy in for a reversal or hesitate before continued direction.
The first shows strength the second weakness of a support line.
Look at $AAPL today where the support line resulted in another new high. Hope this helps. Anni