Trading or Investing inward stocks is similar playing Patintero.
It's all virtually the lines.
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Taken from en.wikipilipinas.org |
When I started trading stocks, i didn't know anything virtually candlesticks or patterns. And though I did my best to larn them, every bit a newbie without a mentor, I got frustrated halfway. I tried listening to the words of the 'enlightened ones' or gurus - sometimes it helped, sometimes it didn't.
Starting out, my exclusively trading organization was "Buy as well as Pray."
It's funny when I intend virtually it now.
But hey. Later I establish out a improve agency of trading - Following "The Lines."
And these lines became my trusted friends inward trading. The Moving Averages.
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These are my linemen. You tin customize your linemen the agency you lot want. |
Red Line = xxx MA
Pink Line = lx MA
Blue Line = ninety MA
In Simple words:
When your "linemen" are inward a higher house the candles, the tendency is down.
When your "linemen" are below the candles, the tendency is up.
In Patintero, in 1 lawsuit a lineman catches you, you're out! Period.
In stocks, I tin lead which lineman tells me when I'm out.
Example:
Because No affair how fundamentally corporation or trashy the stock,
it is emotions that drive the price.
Additional Notes:
+ Moving Averages industrial plant good amongst Blue Chips, to a greater extent than or less s Liners,
but rarely on tertiary Liners (should hold upwardly jockeyed).
+ When you lot run MAs, you lot require to accept patience.
+ My electrical current linemen are 20/50/100 MAs.
+ "The tendency is your friend."
+ Always reckon how many of your linemen are on your side.
Ask these questions:
x - How many are below/above the candles?
x - Which MA is bullish/bearish?
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