"...
I now draw my lines using the open or close of the candles, always excluding the wick. See the wick as "noise". It is the intra candles actions, which the higher timeframe candle has "reduced" by closing within that "noisier" whipsawing movement. My howto: http://badcharts.com/how-to/
..."
Looking at your jpg, I would lower the line to the "more important" resistance. A close above that is a breakout for me, it doesn't have to close above a preivous wicks high.
See my attached jpg.
Hope this helps.
Don't hesitate to contact me in case of questions.
Regards,
Patrick
(2018-03-28, 03:49 AM)Red Barron Wrote: Sure. The green line is resistance.
Thanks for sharing your technique. I'll have to study it further.
Something which gives me fits when using lines of support and resistance is deciding for how long they remain viable. Is that decided by how many times the line has been broken, or how old they are since their inception (days, weeks, months)? Do they remaiin viable indefinitely? I need to find a really good book or article detailing using support and resistance.
I had the same thoughts. That is why the Ichimoku clouds are pretty cool. They phase out older res/sup as time moves on. Works well on 5 years weekly candle charts.
On my 10 year monthly candle charts.. i can easily have patterns over 3 years, sharing the same res/sup breakout/breakdown lines. I guess that is why charting is more of an art than science..
(2018-04-01, 06:59 AM)Red Barron Wrote: Thanks for sharing your technique. I'll have to study it further.
Something which gives me fits when using lines of support and resistance is deciding for how long they remain viable. Is that decided by how many times the line has been broken, or how old they are since their inception (days, weeks, months)? Do they remaiin viable indefinitely? I need to find a really good book or article detailing using support and resistance.
(This post was last modified: 2018-04-17, 12:23 PM by badcharts.)
RE: Beginners Questions
Hi,
Took a look at FB. Looks like a nice breakdown. Check chart attached. Huge volume on breakdown candle, braek below 30 SMA and horizontal trendline. Pull back on contracting volume.
However, a good idea from Isatrader, is to wait for break below Ichimoku green cloud final support line. After that, you have a potential a++ stage 4.
Also, breakdown on monthly candle chart in progress (or at least a top). Next important support is 150, which conincide with weekly Ichimoku cloud final support.
It is hard to apply a different framework for exit, if you didn't use it when trade entered. Lot's of "emotional" landmines you can step on.
Hope that helps,
Regards,
Patrick
(2018-04-17, 09:20 AM)ethanchong Wrote: Hi everyone, i am new to Stage Analysis. For Facebook stock (FB), refer to attached 3 years, weekly chart.
Correct me if i'm wrong, at the moment FB is already in Stage 3 (Top Stage), am i correct?
I bought at price $169, i am wondering should i sell?
