tatunnel

Technical Analysts regard it as RESISTANCE line. At other side there is another line. They say it`s SUPPORT line. When I visualize these lines they seem to me more lively elements. Resistance line is nothing but a visual emotion of people who are taking profit from their stocks, or people who are cutting their loss, to enter a safe zone. Similarly, support line is just a graphical view of emotion, expressed by large number of investors, who are buying a promising stock. These emotions, either from buyer of sellers, have a force, and it move the stock`s price. Experienced traders can identify these movements momentum, only if they are alert enough.  Most of the time, I think, they might miss the chance. So who is the safeguard? Answer is : the Trading System of technical analysis. Below is a graph of a script, generated by Amibroker, a very powerful Technical Analysis software. With the help of some mathmatical formulas it has generated a nice charts, where Resistance line, Support ...

 Fibonacci trading is a mysterious thing to novice TA followers. But all over the world experieced and professional traders have been using these retracements for years to help identify price sup-port and resistance. For months I have observe that it is very much effective in Dhaka Stock Exchanges (DSE) stocks. But as TA is not practiced here widely, nobody talk about Magic of Fibonacci. Today i just randomly selected three of my favorite stocks and Fibonacci proved again its magic. Formula is not so complex. Major trend has two points : 100 and 0 and here its two dashed lines at top and bottom. At middle are fibonacci points lines. They are generally, 0.382; 0.5; 0.618; 0.786; 1.618; 2.618. In Ranfoundry we can see how price misteriusly went up and down in line with the fibonacci points. Pictures follows: (Agni, Aims, Alhaj and Altex)

When Stock`s Price increases everyday, the stock holder becomes worried. Of course he should be worried, and before the scripts start falling he should lock his profit. But who knows when it would start falling? Nobody (but smart money sometimes knows). So we need indicators like RSI, OBV, or stochastic. The problem is, even with weak RSI, OVB, or horizontally straight stochastic a script may go up further. So taking profit in fear of falling some times becomes cause of pain, or less profit. So I would prefer a system like KPL swing to give me an exit signal first. Then I would exit. I would wait and see how much a bullish share can grow. See the Graph of Squiretextile, (data uptodated) Tips :  1. At very bottom is main chart (KPL with, adx) to follow, two others are supporting. 2. Thursday the stock opend bellow its previus day`s closing, but closed above it. Which indicates weekness. 3. Yet there is no fall signal (down arrow) and no ADX (price bar in deep green) appeared. So I w...