AI
Wednesday, July 05, 2006 5:22:41 PM
An Excellent Guide to Succesful Trades:
Trading Rule #2 below applied to Wednesday's trade in that the QQQQ broke below Wednesday's area of "Gathering Support" between $38.64 and $38.77.
The Support & Resistance Report is an excellent guide to successful trades.
Much depends, however, on how well you listen to what the purple areas of Gathering Support and Gathering Resistance are telling you to do.
The purple areas provide specific information about whether you should be in a trade or, perhaps more importantly, out of a trade.
1) When the price of a stock falls to an area of "Gathering Support" and is unable to fall below it (as is often the case with "Gathering Support", at least upon first approach), then it is an appropriate time to venture a purchase.
2) When, however, the price of a stock falls to an area of "Gathering Support" and then breaks below it, it is a sign of extraordinary weakness and a warning to close a long position (and to venture a short sale).
3) When the price of a stock rises to an area of "Gathering Resistance" and is able to rise above it (as is often the case with "Gathering Resistance", at least upon first approach), then it is an appropriate time to venture a short sale.
4) When, however, the price of a stock rises to an area of "Gathering Resistance" and then breaks above it, it is a sign of extraordinary strength and a warning to close a short position (and to venture a purchase).
QQQQ (5-Minute Chart):
Trading Rule #2 below applied to Wednesday's trade in that the QQQQ broke below Wednesday's area of "Gathering Support" between $38.64 and $38.77.
The Support & Resistance Report is an excellent guide to successful trades.
Much depends, however, on how well you listen to what the purple areas of Gathering Support and Gathering Resistance are telling you to do.
The purple areas provide specific information about whether you should be in a trade or, perhaps more importantly, out of a trade.
1) When the price of a stock falls to an area of "Gathering Support" and is unable to fall below it (as is often the case with "Gathering Support", at least upon first approach), then it is an appropriate time to venture a purchase.
2) When, however, the price of a stock falls to an area of "Gathering Support" and then breaks below it, it is a sign of extraordinary weakness and a warning to close a long position (and to venture a short sale).
3) When the price of a stock rises to an area of "Gathering Resistance" and is able to rise above it (as is often the case with "Gathering Resistance", at least upon first approach), then it is an appropriate time to venture a short sale.
4) When, however, the price of a stock rises to an area of "Gathering Resistance" and then breaks above it, it is a sign of extraordinary strength and a warning to close a short position (and to venture a purchase).
QQQQ (5-Minute Chart):
Buy at Support
Sell at Resistance
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