Sold just based purely on TA, where you put aside the long term vision . $Palantir(PLTR.US$ MACD + Resistance Zone strategy. Saw bearish divergences and bearish MACD crossover (yellow circles) on the daily chart, as price action approached resistance zone (red rectangle) Buy price average was $19.4, took the opportunity to sell at $28.7 and bagged a ~50% profit. Not a huge bag but the TA behind this is something that could help fellow traders learn from,...
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From my experience, usually from a trading perspective, it's more probable for a profitable trade when you buy the stock before a bullish news is published publicly as usually that's when people start to take profits and price falls. Thus the phrase "Buy the rumour, sell the news" But if you're a long term investor, news which shows good fundamental structure for the stock valuation is a good sign for you to continue "hodling" aka diamond hands 💎🙌🏻
Based on my previous post, I had mentioned using 2 tools specifically for my trade setup, RSI and chart patterns. I've attached an example of it based on $Apple(AAPL.US$ chart.
For ease of understanding it's labelled 1) to 4).
1) identifying RSI bullish divergence (opposing lows in RSI vs in the actual price) & a symmetrical triangle pattern
2) since there is bullish sentiment, a buy signal arises at the breakout or one can wait for a correction back into the previous resistance zone(rectangle box)
3) usually the height of the symmetrical triangle is taken to forecast price pump, which is where you can take profits and sell accordingly
There are many other strategies and this is just one which people can use in trading. Usually in 1hr/4hr timeframes for swing trade.
For ease of understanding it's labelled 1) to 4).
1) identifying RSI bullish divergence (opposing lows in RSI vs in the actual price) & a symmetrical triangle pattern
2) since there is bullish sentiment, a buy signal arises at the breakout or one can wait for a correction back into the previous resistance zone(rectangle box)
3) usually the height of the symmetrical triangle is taken to forecast price pump, which is where you can take profits and sell accordingly
There are many other strategies and this is just one which people can use in trading. Usually in 1hr/4hr timeframes for swing trade.
NO. 1 RULE, KEEP YOUR EMOTIONS AWAY FROM THE CHARTS![]()
My personal technical analysis of price action in charts relies on simply RSI (14 length) and chart patterns
RSI![]()
- to track momentum shifts by using bullish/bearish divergences
- beginner traders might have issues identifying the divergence mainly due to error in forecasting it
- bullish divergence is when there is opposing "lows" in the RSI vs the actual price action whereas for bearish divergence there is opposing "highs" of RSI vs price action
- common mistakes includes using this below 1 hour timeframes and identifying a low or high wrongly before actual reversal candles are printed for confirmation
Chart Patterns![]()
identifying the right patterns and how to utilise a trading strategy with it is a crucial complimentary tool I use for entry/exit
-chart patterns can be easily searched on Google such as falling wedge in an uptrend(correction), inverse head and shoulders, triple tops etc.
-I personally don't attribute a forecasted narrative to trade with this patterns, for example a rising wedge indicates a sell off forecast, instead I view it as a setup for a momentum shift so I can position an appropriate entry and stoploss for it.
I use fib retracement as well since it's pretty accurate. Some would prefer MACD over RSI to track momentum with the histogram and crossovers of signal & macd line but I tend to use RSI as it's more "neat"
Back to the most important rule, keep emotions in check. If you're feeling overly sad or happy don't touch the charts and DON'T touch your stop loss/take profit if you're feeling extra scared/greedy.
This is from swing/day trader POV, not for an investor who relies more on fundamentals.![]()
My personal technical analysis of price action in charts relies on simply RSI (14 length) and chart patterns
RSI
- to track momentum shifts by using bullish/bearish divergences
- beginner traders might have issues identifying the divergence mainly due to error in forecasting it
- bullish divergence is when there is opposing "lows" in the RSI vs the actual price action whereas for bearish divergence there is opposing "highs" of RSI vs price action
- common mistakes includes using this below 1 hour timeframes and identifying a low or high wrongly before actual reversal candles are printed for confirmation
Chart Patterns
identifying the right patterns and how to utilise a trading strategy with it is a crucial complimentary tool I use for entry/exit
-chart patterns can be easily searched on Google such as falling wedge in an uptrend(correction), inverse head and shoulders, triple tops etc.
-I personally don't attribute a forecasted narrative to trade with this patterns, for example a rising wedge indicates a sell off forecast, instead I view it as a setup for a momentum shift so I can position an appropriate entry and stoploss for it.
I use fib retracement as well since it's pretty accurate. Some would prefer MACD over RSI to track momentum with the histogram and crossovers of signal & macd line but I tend to use RSI as it's more "neat"
Back to the most important rule, keep emotions in check. If you're feeling overly sad or happy don't touch the charts and DON'T touch your stop loss/take profit if you're feeling extra scared/greedy.
This is from swing/day trader POV, not for an investor who relies more on fundamentals.
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Ariff11OP 101830347: could dip to 11+ this week if the market maintains sentiment