technical analysis (2)
Post on 12-Jul-2015
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Technical analysis
Support and resistance Horizontal lines that price bounce from
Price tends to bounce off a few cents before or after.
Very seldom bounce off the exact price
Support Horizontal line that price tend to bounce up from.
Resistance Opposite of support
How to use Buy when price is close to support
Sell when price is close to resistacnce
Indicators Give a signal whether price is overbought or oversold
Cannot be used alone
Use it as a supporting tool
Moving average Most popular indicator
Calculated by taking the closing price of the previous X periods and dividing it by X.
Can also be calculated using the opening price or typical price etc.
Simple
Exponential
Simple MA
Exponential MA
How to use Establish trend
Buy on pullbacks to MA in uptrend
Sell on rallies to MA in downtrend
Establish trend
Sell on rallies
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