This mornings action in AAPL is a good example of how patterns
in technical analysis are fractal - that is, they can occur over different time
frames. Whether it is an ascending/descending triangle, wedge, head and
shoulders, or many others, patterns can occur in tick charts, 5 minute charts,
daily charts, weekly charts....blahblahblah.
The AAPL head and shoulders this morning was just about
textbook, as was the measured move once it broke the neckline. On the chart
below, the 2 shoulders and head are highlighted by the red line while the
measured move lower is highlighted by the dashed line. This is a prime example
of why, while trading, you should follow your stocks in more than one timeframe
to optimize your entry and exit levels.
If you want to know more details about fractal patterns or
what is a measured move dont hesitate to ask.
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