KNOWING STOCK TREND USING CHANNEL
Okay good night, reunite with me Wisnu Anemone, CEO (Chief Everything Officer) from this weblog. OK for this night after a long time not meet, I want to share about trends that exist in stock. As a stock investor as well as an important trader for us to know the trend in a stock is showing what trends ?.
To see a trend in a stock of course we need to use tools or tools in analyzing the trend of a stock. For this time I will use tools that must exist in every securities. This tool can be categorized as a tool in performing technical analysis of stock. For friends know that there are two types of technical analysis, the first modern technical analysis using various indicators such as MACD, Bollinger Band, Moving Average and so on, while the classical technical analysis is more likely to use a pattern or pattern such as pattern head and shoulder, candlestick pattern, doji, channel and so on. For technical analysis article seems to have been discussed in the article yesterday-yesterday so just calm down.
Okay for tonight I will use classical technical analysis using trendline to create a channel. What is a channel, a channel is a tunnel to know the limits of support and resistance in a stock movement. It is very important for traders to know where the support limit and resistance limit (upper and lower limits). Let's look at the picture alone because technical analysis will be difficult if there is no picture. So let's look at the picture of INKP Share Code (PT Indah Pulp And Paper Sinarmas Group)
The image above is INKP's stock code. Then which one is called a channel ?. Those are two long lines above and below that have the function to escort support and resistance. These two lines are like a fence where the movement of stocks when touching the line has a tendency to bounce or rebound term.
Then how do I create two lines that make up this channel ?. How to make this channel easy enough, just drag the line from the highest points of a stock price, these high points are usually called the line of resistance. Then just as well just pull the line from the lowest points of a stock price is where the line is called support.
After we make the channel of course we can see, the channel has a tendency to lead where, crawl up or down or flat flat. Channel is like a pipe so we can know the trend of a stock when it was up and down or flat flat. So when we know the trend of a stock is sure we will think to buy or invest a share. Of course for long-term investors will prefer a stock that has a trend channel that is getting older upwards, it means the company's stock is being good-nice because it is going up.
Conversely, when after we make the channel turns out the stock we are analyzing even shows the channel down trend of course we must be alert and observe. Certainly the stock code that has a downward trend channel is not preferred by investors, but of course we must be objective because in the stock market all have a possibility with a flat or flat channel.
A little extra, once we create a channel in a stock of course we will already be able to see that the trend of stock is now up, down or flat. For the time range friends can set themselves either a month, a year or daily. Because I am a swing trader I see it on a weekly basis. Of course the more distant (history) we pull the channel channel eg monthly or yearly, we will be able to know in the annual time range for example it turns out this stock code has a long-term trend channel that can be seen whether the channel is up from year to year or flat or down. This tran channel is perfect for a long-term investor to invest the money.
The longer the channel created the more we know the growth performance of the company. After we make our channel so know the trend of the stock. But I need to remind to also see the company's report. Although this is a fundamental aspect, of course we must know whether the assets and profits owned by the company also increase or increase in accordance with the channel that we make in the sense that the profit and assets increase each year, then of course the channel will show the channel up trend .
So let's be smarter in investing our money into a stock company. We certainly must know, the biggest reason why you want to buy these shares. Surely we want to buy a stock company that always gives profit, dividends and of course the stock always
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