Understanding Stocks
Understanding Stocks
Understanding Stocks
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
116 UNDERSTANDING STOCKS<br />
QQQ Weekly<br />
20.0<br />
Volume<br />
©Big Charts.com<br />
600<br />
500<br />
400<br />
300<br />
200<br />
100<br />
0<br />
Sep 22 Oct 20 Nov 17 Dec<br />
Figure 11-7 Trend reversal<br />
stock for a month or longer (until there was another trend reversal)<br />
would have brought the most profits.<br />
The challenge is to identify a trend reversal before it happens. If<br />
you do identify a trend reversal, it’s essential you use other technical<br />
indicators to confirm that it’s real and not just a temporary reversal.<br />
Also, just because a trend has continued for a long time doesn’t mean<br />
that it’s in any danger of a reversal. Long trend lines are very common.<br />
Support and Resistance<br />
Support: Buyers Win the Battle<br />
12/06/02<br />
If you understand support and resistance, you will have a better idea of<br />
when to buy or sell a stock. Support and resistance keep appearing on<br />
stock charts no matter what method of technical analysis you use. If<br />
28.0<br />
27.5<br />
27.0<br />
26.5<br />
26.0<br />
25.5<br />
25.0<br />
24.5<br />
24.0<br />
23.5<br />
23.0<br />
22.5<br />
22.0<br />
21.5<br />
21.0<br />
20.5<br />
Millions
Change language