I think kmac has put up some pretty good advice there . Its very much an individual thing to a time frame . That i belive is also the paramount part of it . The time frame .
Takes hrs of watching and getting your pattern recognition right for reliability . Like i will post this chart up of Taw .We play around with the light blue indicator line for ages now with a simple under over method .
Ie buy when the line crosses under the price line sell when it goes over .You could reverse that even to get a different result . We also scan using it . Sometimes we can look at a stock and go ok we should pick that during a scan etc because of its traits to parameters and indicators .
Just say yesterday we picked this stock up in one scan we look at the chart and see if it is ripe for an entry to indication .It wasnt it dropped . Where we looking is need the forty day come under the price line again see if the trend will change and possible future pattern may occur .
You dont want swing in swing out of a trade to quickly if you cant be at the screens and even then to close to the action puts you in a difficult spot as stocks can fluctuate in price a lot . Understanding your indicator to time frame is important .You can speed or slow them down make it appear to happen but you also need be able execute it .
Understand all indication lines will cross at sometime . Look around the overall pattern for candles or the bigger pattern of whats happening ! You may go to a weekly chart then or monthly for looking at a longer trend. You may see the same pattern occurring to the daily being replicated on the weekly even . Cant break resistance yet perhaps .
So it looks mad with all the lines going everywhere ! Well it is the worms on drugs . So look at the second chart i put up Then i put the third up with the price line in candles.
You have just swing traded a stock essentially six or so months ! Looks sounds easy but its not till you get yourself into pattern recognition which comes from hrs understanding and watching charts . The same method wont work everywhere you have pick your stuff to where you believe your indication will work best .
Free maybe able plot his buys sells on the chart
Think you still hold ? Is in my five grander trail pool of stocks to trade this year this one .
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