Brad, was in a hurry earlier getting kids off to school so...

  1. 1,996 Posts.
    Brad, was in a hurry earlier getting kids off to school so didn't get to comment properly on your chart.
    Your trend line is well picked up - however, never assume a line will hold just because its there - especially on
    small caps. What you are looking for is some sign of strength responding to a support line and any sign of
    weakness when approaching resistance.
    So I notice you have used the stochs and macd so as an example we now see price has reached your trend line you've drawn -
    but your stochastics and macd have not responded with a bullish cross - in fact the macd was in the process of making
    a bearish cross two candles back at the trend line.
    Compare this to the other instances prior where price has reached your support line. The stochs and macd started to cross up
    or pulled up leading to a cross shortly after.
    So two candles back you would have been wary and you would have been right to be because price couldn't move very far
    before retesting.
    I'm finding with VSA that Volume on the day is a far better and more immediate indication of strength or weakness at a support line. The stochs and macd are good but they have more "lag." But still very useful for confirmation.
 
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