Question:
Thanks for the tips on reading the charts. I never knew a person was supposed to look at the weekly chart first. Maybe that is what I have been doing wrong? Thanks.
I looked at the charts for AVTR just to see if I could see what you meant. Where was the resistance on it? I guessed at about $65. Is that right? Why does it look like it is in danger of breaking down below support of the 50 day?
My Response:
Looking at the weekly first and narrowing down from there to the daily and then the intraday for buying and selling is key to understanding the big picture. For example: on the daily it might appear that the stock is breaking out to a new all time high but if you look at the weekly you might see that it’s just part of a much larger base with lots of resistance in its path. Stocks breaking out to new all time highs are much more bullish.
The resistance currently in AVTR is about 86- 87 which is the highs of the current base. It looked like to me it was in danger of breaking below support because you see on Friday it moved lower with sell volume well below avg. It closed a hair below support on Friday. Today it continued that move and the bullish action is broken. This is no longer a stock that would be considered for purchase.. at least not anytime in the near future.
wow nice explanation 🙂 MTF multiple time frame trading is a good method to make profit from market i agree with you