General Stock Ideas

[gfp927z]

Bigworld, Looking at the Russell 2000 chart, it went basically sideways for almost 3 years and then finally broke out strong in late 2016, which is bullish.

Prior to the election, the chart had formed a bearish head + shoulders that took almost 3 years to form, and was looking vulnerable, but with the election came the big breakout and new highs, so it's back in an uptrend.

By the conservative rules you don't want to short in an uptrend. You only want to short if it's either already in a downtrend, or is in the later stages of a reversal pattern and then breaks thru key support (say the right shoulder of a head + shoulders pattern). During an uptrend you want to stay long, at least until the chart becomes vulnerable and shows a reversal developing, and then you start shorting when it breaks key support.

Good luck though. I've never actually shorted anything myself, so the above is just 'the rules' as they are taught by the TA experts over at Stockcharts.com. I subscribed to their Chart School service for a year and learned the basics, though knowing it 10 years earlier would have saved me a lot of grief -


http://stockcharts.com/h-sc/ui