I start by finding a point in the past, unless it's retail, I usually go back about 10 months roughly. Ideally, it's a point in time where the stock hit its lowest price. Retail is such a seasonal driven market that their corresponding stocks behave accordingly; spring time products' stocks, clothing and the Holidays, etc.
I like to draw a Begin Watch Vertical...
I had a nightmare with this.
Thought I would be extra clever and set an order in each direction with with my Spreadbetting account and with a trailing stop loss on both
As you can see the sell side "should" have executed perfectly...
due to slippage the price moved so quickly it skipped right past my order :')
safe to say we learnt something today
As shown on the graph, structure analysis could be very useful.
Resistance line: Use maximums and connect them to draw a resistance line which means that whenever price comes to this line it cannot break it, ther is a strong resistance, forming a trend. Once broken, though, it is a good opportunity to BUY and profit from price increase.
Support line: Similar...
This is not a trading Idea as the reasons for entry have already been and gone.
Text Book 2618 bullish trade
1. Double Bottom against major structure support/resistance
2. RSI Divergence
3. Higher High established
4. Retracement to the 61.8 Fibonacci level
How to trade
1. Stop loss below double bottom (according to your rules) must have 1:1 Risk to reward...
