The SLV gapped away to the upside on the strength of Monday's breakout of the Bullish Falling Wedge. The top of the Wedge comes in today at 12.614 if the SLV should pull back that far for a retest of the breakout.
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About Me
- Melf Elf
- Blog Purpose: To share with others what I know about technical analysis and about trading. I am not licensed to give financial advice. I never do so. I don't try to "predict" the market. I try to FOLLOW the market, as best I can. I honestly don't know how high or low a stock is going. I'm not a psychic. I mainly look at chart patterns, trendlines, support and resistance. If a pattern breaks out or breaks down, that gives me a price target that is IN PLAY. That doesn't mean that the target will get MADE. Some do. Some don't. While I try my best to answer questions that are directly related to any of the posts that I make, I don't have time to give individual tutoring. Please check bookstores, libraries and myriad sources on the internet on the subject of technical analysis and take advantage of those resources. Thank you for visiting my blog. I hope that you are able to learn something while you are here.
4 comments:
They forgot to give us a chance to buy it.
Mark,
Yeah, that's too bad. It's also too bad that I didn't look at this chart two days before I did. The 12.31 Buy Signal on Friday was a very nice entry. She's up 10% from there, and nearing the first upside target of 13.73.
I've often wondered how to handle so many charts. I assumed that most people used a pattern id program but I also felt it was too advanced for me at this point. Somewhere I am sure there are computerized programs that identify a host of alerts, I wonder how effective they are.
Mark,
In my view, the difficulty with programs that identify a host of alerts is that they are "indicator alerts," and the indicators don't know what the chart looks like.
For example, indicators often give overbought/oversold Sell and Buy alerts, but when charts are in strong trends, those signals aren't very reliable. Charts can stay overbought and oversold for a long, long time.
If there are programs that do identify the patterns that we discuss AND give Buy and Sell alerts from a few indicators, I'm unaware of them, but that would be great.
Example: "SLV will break out of a Bullish Falling Wedge at 12.69. The 8, 55 and 89 RSIs already have given a Buy Signal on May 1, etc."
If there were a program that would tell us something like that, it would be WONDERFUL, but then it probably wouldn't work because everyone would be playing the same breakouts and breakdowns ;)
So-o, I guess we've got to do the grunt work and try to find the patterns and the breakouts, support and resistance, etc.
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