Remembering The Simple Power Of Trends
Wheter you are an experienced trader, or a novice investor, reviewing and utilizing the power of trends and trendlines should absolutely be a part of your technical analysis arsenal. In his video K.I.S.S…Theories into ACTION!, MarketClub.com founder Adam Hewison demontrates how to use trendlines and fibonacci retracements.
Keep It Simple And Straight
I bet you thought K.I.S.S. meant something else, but in the world of stock charts, trendlines are the most obvious analysis tool available, and the can be very powerful. What I like about this particular lesson is that Adam reviews the definition of a class trendline (a straight line that touches at least 3 price points on the chart), draws them in, and then identifies how you can use trendlines and the current stock price to chose entry and exit points.
He gives a great demonstration of using trendlines, accumulation, and fibonacci retracements on a live stock (symbol JRCC). If you would have made the trade on the dya the video was produced, purchasing the stock at $19.07, today you would have made a $231% profit. If you were lucky enough to catch the top of the most recent pattern, the profit would have been almost $320%.
Take a look at the chart and then watch the video
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