Rules to draw Trendlines on Stock Charts
With Continuation of my previous week article
How to trade using Trend Lines in Stocks Charts
Today we will discuss on TRENDLINE RULES
1. VALIDATION
The general rule in technical analysis is that it takes two points to draw a trend line and the third point confirms the validity. More points used to draw the trend line, the more validity attached to the support or resistance level represented by the trend line.
The chart of NIFTY shows an uptrend line that has been touched 3 times. After the third touch in Jun-10, the trend line …
Read the full story »
How to trade using Trend Lines in Stocks Charts
Today we will discuss on TRENDLINE RULES
1. VALIDATION
The general rule in technical analysis is that it takes two points to draw a trend line and the third point confirms the validity. More points used to draw the trend line, the more validity attached to the support or resistance level represented by the trend line.
The chart of NIFTY shows an uptrend line that has been touched 3 times. After the third touch in Jun-10, the trend line …
Read the full story »
posted by Bramesh at
9:36 PM
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