Quote:
Originally Posted by pan
heres the daily charts on crox.
if you had a reversal in the trend, what would you suggest to look at other then volume to identify it as being a real and not a false breakout?
technical analysis aside and incorporating some common sense, these shoes were fashionable last year and the market reflected that by seeing the price rise from $12 in may 2007 to $70 sept 2007. these shoes may be just as fashionable this year.
is there any place for common sense analysis when trading?
pan |
Hi Pan,
The first thing that I do when trying to determine if something is a real reversal in the trend is look mark the trend on the weekly, daily, and hourly chart by drawing in trend lines on each.
Next I confirm with volume.
Next I would look for other general areas of resistance or support in the direction of the reversal to see how strong the resistance is in this case to the upside.
Lastly I would look at some indicators for signs of a reversal such as the
MACD and the
Stochastic Oscillator.
For fundamental research I would suggest checking out
Yahoo Finance.
Hope that helps.
Best Regards,
Dave