Chart Your Way To Profits: The Online Trader's Guide to Technical Analysis with ProphetCharts (Wiley Trading) by Timothy Knight

Author:Timothy Knight [Knight, Timothy]
Language: eng
Format: mobi, pdf
ISBN: 9780470648872
Publisher: John Wiley and Sons
Published: 2010-06-21T16:00:00+00:00

FIGURE 10.20 Terra Industries (symbol TRA) was steadily trading at about $10 for many years, but once it cracked beneath support, it had a 90 percent loss in just 18 months.

FIGURE 10.21 Jacuzzi (symbol JJZ) fell from $25 to $2 after it gapped down beneath a rounded top in mid-1998.

FIGURE 10.22 This is what a rounded top looks like shortly after the initial break.

Price movement after a stock sinks beneath a rounded top can be devastating. This can be good for you in two ways: if you are long the stock, it’s a strong indication that you had better get out; if you have no position in the stock, you might even consider shorting it or buying puts on it. (Actually, if you’re long the stock, you would be wise to set a stop-loss order just beneath the support level so that you needn’t monitor the stock throughout the trading day.)

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.