Stock Charting for Dummies - Last Week and Next Week
The markets have been bearish recently for a variety of reasons, the euro, the Greeks, the Chinese etc... so what are they charts saying about where we are heading? First, on the SnP 1280 is a significant support line,if it goes under 1280 then we can expect it to head quite a lot further south.
However,the 'old school chartist' is quite optimistic as can be seen from this interest video below. Personally I am more negative but that may be just be negative nature and also because I'm hoping for stock prices to head lower so that I can buy them cheaper.
It is important for beginners to understand stock charts as the professionals use them to time their trades. So if you don't understand them then you are placing yourself at a disadvantage.
Chart analysis of last week and possible trend for next week
A couple of things to remember for short-term swing trading - don't buy a stock if the 5-day moving average is pointing down. And in swing trading you are looking for a profit of around 8 or 9% before selling up and moving on. It's all about risks and rewards, you need to ensure that your winners make more than your losers lose, so don't forget to sell if your trade moves down around 4%, don't hang on hoping it will bounce back, just get out and look for another one. For more details on swing trading see - swing trading tips
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