Monday, 2 March 2015

How to buy a stock at a bottom price???

I would like to answer the famous question "How to buy a stock at a bottom price???
As a technical trader, you should create your own trading system thru Japanese Candlesticks, Ichi Moku, Indicators etc..etc... As a Newbie Mentor, I'll give you the most simple system that I used, then judge if this is possible to copy. I don't recommend this if you don't have time to monitor the stocks during the trading hours.

First, The graph should show a long green candle after a break up on the resistance line.
The resistance at 8.80 broke up and start to move sideways on the next 3 trading days, then a long green body of candlestick confirmed the bullish uptrend.

Second, A confirmation of an indicator is needed before buying the stock. MACD will be one of the simplest indicator that we could use. Crossover of fast and slow moving average is to be consider.

Third, DMI or Directional Movement of the Index, it will tells you if the index is trending or not. As a substitute RSI and Stochastic can be added.

The result of picking at the possible bottom price.KABOOM....

Sincerely yours,

Jonathan Ruiz

P.S. For Advanced Courses About Stocks, Real Estate, and Blogging, Here is the LINK:

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