Post by Eagle1 on Jun 24, 2006 8:51:55 GMT -5
Found this on another site and thought it would be a good addition here.
How & when to Buy or Sell
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Many people ask when does one buy or sell.
What people usually do to sell a stock is ...find the next resistance (for example stock ABC next resistance is @ .015) sell right BEFORE the resistance because stocks will usualy hit resistance then fall DOWN. So sell right before resistance then buy back at support. If the stock breaks resistance then you buy after the bid side has broken the resistance and you ride it to the next level of resistance, with the old resistance now acting as support. And the old old support as support level 2
Sell at:
1. just prior to resistance levels
2. when your stock has lost support (then look to add at support level 2)
3. when a stock has formed a base then has lost that support
4. when your UP!!!
So buy at:
1. support levels
2. breaks of resistance on the bid side (clearly, dont buy if the bid cracks resistance for 1 second )
3. when a stock is basing after a long downtrend and the bearish are done pissing on your parade
What acts as support and resistance?
Support
1. Any prior lower low then the current price
2. Any moving average that is lower then the current price
3. A major resistance level that was broken to the upside and then comes down to this (old) major resistance level, this will now be support
4. Bottom channel lines
Resistance
1. Any prior higher high then the current price
2. Any moving average that is higher then the current price
3. A major support level that was broken to the downside and then comes up to this (old) major support level, this will now be resistance
5. Top channel lines
How & when to Buy or Sell
--------------------------------------------------------------------------------
Many people ask when does one buy or sell.
What people usually do to sell a stock is ...find the next resistance (for example stock ABC next resistance is @ .015) sell right BEFORE the resistance because stocks will usualy hit resistance then fall DOWN. So sell right before resistance then buy back at support. If the stock breaks resistance then you buy after the bid side has broken the resistance and you ride it to the next level of resistance, with the old resistance now acting as support. And the old old support as support level 2
Sell at:
1. just prior to resistance levels
2. when your stock has lost support (then look to add at support level 2)
3. when a stock has formed a base then has lost that support
4. when your UP!!!
So buy at:
1. support levels
2. breaks of resistance on the bid side (clearly, dont buy if the bid cracks resistance for 1 second )
3. when a stock is basing after a long downtrend and the bearish are done pissing on your parade
What acts as support and resistance?
Support
1. Any prior lower low then the current price
2. Any moving average that is lower then the current price
3. A major resistance level that was broken to the upside and then comes down to this (old) major resistance level, this will now be support
4. Bottom channel lines
Resistance
1. Any prior higher high then the current price
2. Any moving average that is higher then the current price
3. A major support level that was broken to the downside and then comes up to this (old) major support level, this will now be resistance
5. Top channel lines
