Profit Taking

[zigglewigler]

If you draw up some renkos or line breaks, you'll find that a certain amount of movement the other way is a tipping point for that market, they all have different levels of movement necessary to cause that shift of course, but once that reversal is underway when your appropriate o/b o/s osc has maxed out, then ride to the opposite exhaustion point. You need to study the characteristics of the candle patterns at the time and other factors such as adv/dec issues to gauge whether such reversals are very short term fake out moves, it sometimes takes a few pushes to get the market to switch direction. It isn't difficult to detect the days the SP has got a head of steam on it, and isn't about to be dissuaded from it's preset course.

4th April??????

 

[haleh]

If you draw up some renkos or line breaks, you'll find that a certain amount of movement the other way is a tipping point for that market, they all have different levels of movement necessary to cause that shift of course, but once that reversal is underway when your appropriate o/b o/s osc has maxed out, then ride to the opposite exhaustion point. You need to study the characteristics of the candle patterns at the time and other factors such as adv/dec issues to gauge whether such reversals are very short term fake out moves, it sometimes takes a few pushes to get the market to switch direction. It isn't difficult to detect the days the SP has got a head of steam on it, and isn't about to be dissuaded from it's preset course.

4th April??????

thanks for reply ,i use bar charts & i do't know what renko is.please let me know.thanks

 

[zigglewigler]

haleh

There's plenty of ways to learn about Renko and other Japanese charting techniques via this site. Do a search.