[NEW LINES]
A red day across the FTSE today as yesterdays gains were wiped out. SOLA and SHI the only ones on my watchlist in the blue. I use Pro Real Time (prorealtime.com) for charting, and today noticed a new feature: auto-trend lines.
I was reading a book called the Investors Guide to Charting (not sure if it's any good yet, the guy that wrote it is not a chartist at all), so was messing around with some charts last night, but, strangely, just as I wanted to practice some new moves - this auto trend gadget popped up.
Anyway I ran it across my watch list and it's quite interesting. For the most part, my trending TA is pretty good. SHI is one exception, there was some resistance I hadn't spotted earlier:
Now, like I keep saying "tomorrow is the day", at least according to this. Today was literally on the trend line and the 9 day EMA. RSI says oversold, and it crossed the signal line this afternoon. So we could be in for a run.
My exit strategy entails the following: The resistance is at 878. I will watch for signs of weakening in the days leading up to a potential hit at 878. If I see any, I predict the SP to drop. If it still looks strong, I will hold and see if this line is broken. However I must also be exercise caution with the second angled red line on the chart.
If the SP fails at this first trend line, my loss exit will be at a break of the green support line.
This could be another failure, but I'm interested to see how this does. Potentially SHI could slump to support at 700.. or worse. A bounce off 700 is a buy signal for me. I should also add, as a postscript, that there is significant potential for a head and shoulders formation on the recent data. The volume is worryingly low on what could be the right shoulder.
I was reading a book called the Investors Guide to Charting (not sure if it's any good yet, the guy that wrote it is not a chartist at all), so was messing around with some charts last night, but, strangely, just as I wanted to practice some new moves - this auto trend gadget popped up.
Anyway I ran it across my watch list and it's quite interesting. For the most part, my trending TA is pretty good. SHI is one exception, there was some resistance I hadn't spotted earlier:
Now, like I keep saying "tomorrow is the day", at least according to this. Today was literally on the trend line and the 9 day EMA. RSI says oversold, and it crossed the signal line this afternoon. So we could be in for a run.My exit strategy entails the following: The resistance is at 878. I will watch for signs of weakening in the days leading up to a potential hit at 878. If I see any, I predict the SP to drop. If it still looks strong, I will hold and see if this line is broken. However I must also be exercise caution with the second angled red line on the chart.
If the SP fails at this first trend line, my loss exit will be at a break of the green support line.
This could be another failure, but I'm interested to see how this does. Potentially SHI could slump to support at 700.. or worse. A bounce off 700 is a buy signal for me. I should also add, as a postscript, that there is significant potential for a head and shoulders formation on the recent data. The volume is worryingly low on what could be the right shoulder.
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