Valleys and Mountains are prevalent in charts. There is an old adage in the trading world where people are told not to pick tops and bottoms. Most people pick tops and bottoms out of shear speculation. What is speculation to begin with. Lets do a little dawgma. SpeculateMerriam-Webster.com Definition a : to meditate on or ponder a…
Tag: Support and Resistance
KEWLTECH: Issue 076 – Sweet Oily Legs
Just want to walk through some things about legs. It seems that a lot of what I consider obvious, isn’t so obvious to many people. Must be my ADD. But hopefully this will help clarify some things. Really there is a lot to be known about technical analysis. But the more you know, the more…
KEWLTECH: Issue 064 – Consolidation
Areas of consolidation have so much information to provide. Not many people understand how to use them. When people see areas of consolidation, many people make comments like “the market is trying to make up its mind”. Speculative analysis. It isn’t even technical. What do most people do with such speculative analysis, they generally say…
KEWLTECH: Issue 062 – Market Does What It Does
Earlier today a trader was commenting about the tragedy in Japan. While all that unfolding over there is not something to joke about, it is also sad that this trader was trying desperately to relate what is happening there to the market. After the market hit 1251 early today, he remarked how can the market…
KEWLTECH: Issue 061 – Going Down The Leg
When you’re going down the leg there is nothing to look at but the leg that took you up. The leg up has interesting levels in between. This 1600tk chart describes the leg that took us to the previous high. There has been distribution. We sell and bounce at 27.5, now in order to change…
KEWLTECH: Issue 058 – Levels And Momentum
Well, if you know what levels are, you know that this will be about S/R. The misinformed have been calling moonshots all last week. What is so sad, is that whenever they call for the moon, the market pulls back. Clearly displaying lack of knowledge of S/R’s and momentum. These poor blokes, I hope they…
KEWLTECH: Issue 053 – S/R Action
So now that we know how to find S/R’s, lets discuss how they work. One of the simplest concept to learn is the leg. Any chart pattern can be divided into specific parts. The primary distinctions will be focused on the legs of the chart pattern. A double top and a double bottom has 2…
KEWLTECH: Issue 008 – Support & Resistance
Support & ResistanceStockCharts.com Definition Support and resistance represent key junctures where the forces of supply and demand meet. In the financial markets, prices are driven by excessive supply (down) and demand (up). Supply is synonymous with bearish, bears and selling. Demand is synonymous with bullish, bulls and buying. These terms are used interchangeably throughout this…