Do you REALLY know what Technical Analysis is in an investment ? It doesn't matter if you don't know a single thing about it or you have been using it to earn yourself into millionaires. This is a simple game of 5 pictures to look at and then make your own decision what Technical Analysis is. Are you ready ?
Below 5 screens are showing EXACTLY the same investment vehicle, at exactly the same time and the lines mean exactly the same things. The only difference is the X axis at the bottom. They range from 1 minute to 1 day. So in each of the chart below, one green bar of price would mean the price within that particular duration ie. 1 minute, 5 minutes etc.
If you follow up to here, now is the time to look at the graphs. You should decide to buy or sell when you look into each graph.
1 bar = 1 minute
1 bar = 5 minutes
1 green bar = 1 hour
1 bar = 1 day
1 bar = 1 week
Did you get these ?
1 min : Sell Now
5 mins : Bought and Keep, Not Selling Yet
1 hour : Sold and Keep, Not Buy Back Yet
1 day : Sold, Not Buy Back Yet
1 week: Side Trend, Don't do anything.
( Sell = Short, Buy = Long for this game)
So, what should we do ? Do we Buy or Sell at this particular instant ?
2 comments:
I use hourly sticks to detect signs earlier, whereas daily sticks are for looking at the probable supports and resistances over a period of 1y or more. 1min/5min sticks are probably useful for daytraders; weekly sticks are likely to slow to catch any trends.
great comment ! :)
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