There are many times situations where the stock just takes off and one thinks that he/she has lost the opportunity to hop on. This is common in stocks where the trend is particularly strong in all higher time frames also.
In this post I try to put forth a method using which we can try to enter the trend.
Below are the daily charts of Whirlpool and Yes bank. This may look like a hindsight analysis but the post can serve as a pointer to what RSI along with Trend line support can show to an opportunist.
The above is the Whirlpool chart which has been trending nicely. Notice the touch points to the trend line on RSI and at the same time also notice the touch points on the trend line of the stock. Once this happens, we can apply basic trend line analysis and enter the trend as shown in the chart below.
Once in the trend, one can trail the position till the Trend line breaks or any other trailing method which the reader may be using.
Another example is of Yes bank. This stock gave a monster rally from 700 levels to 1400 levels. Again notice the touch points on the RSI trend Line and on the Trend line of the stock. There were more that a couple of occasions where one could have hopped on the stock and trailed the position.
Hope I was able to convey the point which I wanted to make.
Comments and improvements are welcome!!