Today we will see the reversal of the trend line in SBI chart in other words the trend which was followed by SBI from the month of May 2011 has changed from 10th Jan 2012 onwards as you easily figure it from the following figure.
Trends have proved to be friends so always stay with the trends never try to go against it. And this is where said that whenever trend shifts from up to down or down to up it gives us an opportunity to earn money in the stock market if it is detected during early stages.
Trend line is the early indicator which indicates that trend is going to change.
Trend line varies from person to person each of them use this indicator and draws the trend line according to their experience and factors they consider.
We have here drawn a trend line for the SBI chart by joining the peaks of the points which are tested at various periods.
So, two things need to be kept in mind while we draw a trend line: -
1. To draw trend line at least we should have 2 peaks.
2. These peaks should have distance of longer period like in this example we have one peak is month of May second and second peak is month of July and the third peak is in December month.
The above chart fulfills the criteria to be proved as strong trend line. Also to prove the strength various factors like volumes, RSI should be there to prove complete strength of the trend line. For the timing we will only consider the trend line and what factors need to be kept in mind before we draw it.
As you can also notice from the chart that SBI is reversing from the 10th Jan 2012 towards up side so it is good chance to earn money by investing in it.
Also see the following video which shows the trend line for SBI chart from www.tradingkamai.com: -
See syllabus for Technical analysis training in Mumbai,India.
Please read our disclaimers before investing http://tradingkamai.blogspot.in/p/disclaimer.html
Trends have proved to be friends so always stay with the trends never try to go against it. And this is where said that whenever trend shifts from up to down or down to up it gives us an opportunity to earn money in the stock market if it is detected during early stages.
Trend line is the early indicator which indicates that trend is going to change.
Trend line varies from person to person each of them use this indicator and draws the trend line according to their experience and factors they consider.
We have here drawn a trend line for the SBI chart by joining the peaks of the points which are tested at various periods.
So, two things need to be kept in mind while we draw a trend line: -
1. To draw trend line at least we should have 2 peaks.
2. These peaks should have distance of longer period like in this example we have one peak is month of May second and second peak is month of July and the third peak is in December month.
The above chart fulfills the criteria to be proved as strong trend line. Also to prove the strength various factors like volumes, RSI should be there to prove complete strength of the trend line. For the timing we will only consider the trend line and what factors need to be kept in mind before we draw it.
As you can also notice from the chart that SBI is reversing from the 10th Jan 2012 towards up side so it is good chance to earn money by investing in it.
Also see the following video which shows the trend line for SBI chart from www.tradingkamai.com: -
See syllabus for Technical analysis training in Mumbai,India.
Please read our disclaimers before investing http://tradingkamai.blogspot.in/p/disclaimer.html
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