- LOOK FOR PATTERNS. ANTICIPATE THE NEXT ITERATION OF THAT PATTERN. This is the game. When everything is going up in steady reliable zig zags, thats best. If it shoots up immediately, but then goes down steadily, that is the best - gives time to sell.
- IF IT'S GOING UP RAPIDLY, DO NOT SELL! Wait for it to slow down and start going down.
- UNLESS it's been going up like crazy for a while, because when when it does come down, it will be sharp. So, if you made a lot of money and the chart is peaking, SELL!
- BUY / SELL ? If reversed bar is a bit bigger than the previous, it will continue in the reversed direction. If it's very much bigger, it may come back down right after. So, set a trade preemptively! Each bar, set a future trade below/above that bar, if it reverses direction. Then, if it continues in that direction, you're not falling along with it. After that trend is finished, it's too late!
- Consider the recent trajectory.
- If it's been going up with lots of hype, then allow it to go down. Don't sell so fast!
- If it's been horizontal, then sell at first sign of trouble.
- If miss a chance to sell, but it's been consistently going up, DON'T SELL, wait.
- Hindsight: If same bar is a bit bigger than the previous, it will continue in the same direction. If it's very much bigger, it will probably not go much higher.
Higher Highs = will continue going up
Lower Lows = will continue going down
20/50 moving average lines crossed = trend has reversed
Learn about those Bars and Candles and volume! https://www.youtube.com/watch?v=vGVIqScEWnI
price which a stock has hard time falling below
price which a stock has hard time rising above