STOCK GOODIES PLAYS OF THE WEEK

[Black_NITE]

P&F Vertical Count Combining With Trendlines

P&F charts can be displayed with or without trendlines. Rising (blue) trendlines are called Bullish Support Lines and falling (red) trendlines are called Bearish Resistance Lines. These lines provide a quick snapshot for the direction of the underlying trend. Many traders advocate trading in the direction of the underlying trend. This means taking bullish signals when the trend is up and prices are above the Bullish Support Line. Conversely, bearish signals are preferred when the trend is down and prices are below the Bearish Resistance Line. The chart below shows Agilent (AA) with these trendlines. Notice how the stock broke the Bearish Resistance Line and forged a Quadruple Top Breakout with the move above 30 in the last column of X's. This column is not yet fixed because we have yet to see a 3-box reversal. Price Objectives are preliminary until the column length is fixed.