Trendlines Tips

Uptrend Chart

Downtrend Chart

• The more times a stock touches a trend line, the more significant it becomes.
• It takes two touches to draw a trend line, but 3 to confirm it as being a valid one.
• In a down trend, draw the line along the highs of prices.
• The steeper the trend line, the less reliable it will be.
• A trend line break does not mean that the trend will change.

Drawing trend lines is an art form. Everyone has their own way of drawing them. There is no perfect way to draw them and it seems that no one can agree on the best way! Mastering the art and will find that the trend will more likely on your favor.

Even trade based on trendlines could make a profitable trading but don't just buy a stocks just because it is hitting the trendline. They are just a piece of the puzzle.

Happy learning!

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Market Correction?

KLCI plunge another 6.21 points today after sharp fall down 34.22 points yesterday. The weaker market is partly due to US down investor sentiment since end of last week. The impact not only influence Malaysia market but all the world major index.

Most stock analysis said that this is only temporary correction due to US sell down sentiment. They expect the market to be volatile over the short term and overall long strategy still intact. They still confident of meeting the 1,480 mark year end.

Most of price stocks in market become cheaper and more cheaper during this time. But don't catch a falling knife if you want still alive. Trend is our friend. Don't go against it. Discipline, patience and wisdom are traits that we must have to become a successful trader.

Happy trading!

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