As a trader who jumps into trading first time, life can be hard. There is a jungle out there and the pressure to succeed does not make it easier. Add to it the masala of Social Media which can confuse even further.
After trading for some time now and pouring over many indicators, I have learnt that the humble Trend line does the job perfectly.
What do I mean?? I am of the view, at least when it comes to Technical Analysis (TA) that charts are everything.
Here are some charts which I had put on my twitter handle (varun550@blisstrades). The charts are pulled up by me using a proprietary indicator which I use and then applying TA on them.
The idea is to catch the stocks which exhibit momentum and jump on them for a buck or two. (Sometimes can be pocketful too). Here the moot point is not where I have caught the stock to ride it. Many must have caught it way before. The idea is to study how a simple tool like a Trend Line can do wonders to your TA skills.
And the subsequent PA was a 4% move. And since its a weekly chart, more gains can follow.
As can be seen, price has now breached the second falling TL also.
Stock at 422 now!!
There are many more charts on my Twitter handle which you can use as your learning.
Now the next part is ... How to draw a Trend Line.
As can be seen from majority of my charts, I use at least 3 points to draw a trend Line. More the better!! I am not sure of any proof which says how many points to use to draw a TL but the basics which I use are follows:
1) The TL should be drawn using at least 3 points/touches.
2) Join the highs of the candles not closes. Do not try to fit a TL.
I hope I was able to convey what I wanted do. Please feel free to follow my Twitter handle for more TL examples.
Mail me at firstname.lastname@example.org for any clarifications, discussions on charts.
For my free Telegram Charts u can join here: https://t.me/blisstrades
For Picking momentum stocks by scanning stocks, one can visit: http://imojo.in/8jxij7