I been drawing trendlines these past days after reading (partially) the thread of threads "Teach a man to fish". There is a question I have on trendlines:
[See attached picture]
I have drawn 2 trendlines (green) one has a more positive slope than the otherone. From purely a technical standpoint, which one would be a better trendline to follow?
Secondly, since the stock continued to move up after the first (shorter) trendline is broken if you had sold it would would miss out on further price appreciation, and if you had not and had the stock tumbled you would lose 40% of profits.
What do you all suggest in this case?
P.S. This a intraday Nifty closing price movement but I have seen similar movements in daily charts. I'm just using this as an example. Nevertheless, the basic question is what do you do when the stock start moving fast leaving the trendline behind? Where do you book profits?
[See attached picture]
I have drawn 2 trendlines (green) one has a more positive slope than the otherone. From purely a technical standpoint, which one would be a better trendline to follow?
Secondly, since the stock continued to move up after the first (shorter) trendline is broken if you had sold it would would miss out on further price appreciation, and if you had not and had the stock tumbled you would lose 40% of profits.
What do you all suggest in this case?
P.S. This a intraday Nifty closing price movement but I have seen similar movements in daily charts. I'm just using this as an example. Nevertheless, the basic question is what do you do when the stock start moving fast leaving the trendline behind? Where do you book profits?
Last edited: