Many people ask me each day when to sell/buy, how do you know when to sell or buy....well here goes
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 usually 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 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, don’t 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
4. Top channel lines
stockanalyzer of stockhideout.com
Hot Penny Stocks and Canadian Stocks Stock Message Board
stockanalyzer of stockhideout.com
Penny Stocks and Canadian Stocks Stock Message Board
