Teach A Man To Fish And.........

[Saint]

Hi TERAHERTZ,

Yes,my friend,a picture is worth a million words.Shall try to put up charts as often as possible.But I have all kinds of problem with file size,etc.

The below attachment is a stock of AMZN(Amazon)trading in the NASDAQ.The important thing is to know what we are talking about when we say pivot low and pivot high,etc.

So let's go to the chart of AMZN.We have an uptrend on the daily charts of AMZN in November,followed by a SIDEWAYS TREND from late November to late Dec 2006.Why do we say that we are in a Sideways trend?As the eye says,so it is.We are in an obvious trading range between the 47.68 to 49.5 area.

Then we have a break down on the last day of December followed by a weak rally back into the trading range and then we have a decline taking out the previous pivot low made in early Jan to new recent lows to the 43 area.We therefore say that we are in a lower pivot low as compared to the previous pivot low.Then we have another rally to the 45.93 area.This forms a pivot high that is lower than the previous pivot high.Thus we have lower pivot highs and lower pivot lows.This series of lower pivot highs and lows is called a DOWNTREND.

Happy Trading!
Saint

 

[Saint]

Let us take another example...........This is a weekly chart of MER(Merrill Lynch)trading on the NYSE.

Take a look at the attachment given below.

It made a pivot low in August 2004 of 47.5,then we had a rally and a mild decline to 50.We have just made a higher pivot low.Is this an uptrend?Maybe.But we get to confirm that this is a clear cut uptrend once the previous pivot high is taken out.The rally towards the 60 takes out the previous pivot high.What do we have now?We have a higher pivot high and a higher pivot low.We are in an UPTREND.

And then once again,from May 2005 till date,we have been making higher pivot highs and higher pivot lows.

Happy Trading!
Saint

 

[jaideep]

QUOTE..."Yes,my friend,a picture is worth a million words.Shall try to put up charts as often as possible.But I have all kinds of problem with file size,etc....." ...UNQUOTE




.....And time constraints, fatigue etc. to cope with surely. Yes, my friend Saint...you're doing more than enough already & please do things at your own pace. No one will grudge you this; on the other hand, everyone in this forum will be all the richer in TA for it. Don't worry about this, you can bet your good & generous life on it.

This is for you dear Saint (Metaphoric progressing to Literary) ......

If I find myself on a pleasant Sunday evening,
Doing something that I usually would'nt be doing,
And that's not TV-ing with the wife,
Or cribbing about life,
Or even some very serious friendly'n social drinking.

That's 'coz I'm busy copy-pasting some words of pure gold,
Which I think I need to put on paper before I get too old,
Yes, there're books by the score,
Tips, advice 'n even more,
But surely, lessons like Saint's telling have never ever been told.

 

[jaideep]

Selamat Malam Dato Saint.

 

[Saint]

SUPPORT AND RESISTANCE

SUPPORT is that area where buying interest exceeds selling interest,and therefore a previous decline gets halted at this area and turns back up again.It is marked by drawing a horizontal line connecting two or more bottoms.

RESISTANCE is that area where selling pressure exceeds buying interest.It is an area where previous rallies get halted and turn down again.It is marked by drawing a horizontal line connecting two or more tops.

Support and Resistance are not absolute points.They are areas.

When Support breaks to the downside,we call that a Down Side Breakout or Breakdown.When Resistance breaks to the upside,we call that a Breakout.

When we get a breakdown below support,that area of support now becomes an area of resistance.Have a look at the JNPR charts below.That area of support broke down and that same area is now acting as Resistance.

A breakout above Resistance,and that same area of resistance now becomes a new Support.

These are important areas for every trader,either as an entry point or an area to take profits.

There is more on Supports and Resistances.We 'll go over them slowly and with examples.........but slow and steady for now.

All the best!
Saint

 

[Saint]

Selamat Malam Dato Saint.

Ah,someone who could speak some Malay .......Selamat Malam,En.Jaideep.Jumpa lagi pagi esok.

All the best,my friend,and thank you for all your warm remarks.

Saint

 

[Terahertz]

Let us take another example...........This is a weekly chart of MER(Merrill Lynch)trading on the NYSE.

Take a look at the attachment given below.

It made a pivot low in August 2004 of 47.5,then we had a rally and a mild decline to 50.We have just made a higher pivot low.Is this an uptrend?Maybe.But we get to confirm that this is a clear cut uptrend once the previous pivot high is taken out.The rally towards the 60 takes out the previous pivot high.What do we have now?We have a higher pivot high and a higher pivot low.We are in an UPTREND.

And then once again,from May 2005 till date,we have been making higher pivot highs and higher pivot lows.

Happy Trading!
Saint

Thank You very much Mr. Saint for the work u are doing.

 

[avinash]

Thank You very much Mr. Saint for the work u are doing.

Great work,Saint......and although I know you don't care for such things,you have run up a 1000 views in slightly less than a week.This thread is not as un-popular(for want of a better word) as you thought it would be.

Avinash

 

[asgharl]

Saint,

I have been visiting this forum for abt a week now.
I just happen to trip upon this beautiful thread today.
Its just great, keep up the good work was wondering where to start on TA. Now I have got a beacon of hope.
Thanks.

 

[jeemonthomas]

Really good one esp for us starters


Rgds