Fundamentals come first to let you determine which stock to buy; Technicals determine to give you the best profit spread. I got a query from a fellow trader who got betrayed by Gartley Pattern.
He was expecting at least 50% retracement of AD which is what 99% people will do too! But actually it was my fault as I proudly mentioned in my blog of not using Stop Loss which is untrue. It depends. For Gartley, here should be the Stop loss.
The Stop loss has to be placed after a significant amount of time (I suggest to put the SL when the curve approaches pivot lines.). Here it got reverses when it touched the daily pivot line and he got betrayed ha-ha,
So I used another technical analysis knowledge here and combined to my decision – “Daily Support and Resistance lines induce chances of reversals.”
Then we were waiting for trading opportunity –
Well, we got a nailing opportunity. When the chart broke the point D, there was a serious reversal tendency due to supply and demand theory.
Look what happens when it touches the Daily Resistance. The STOCH is now 99. Time to put a sell order with a take profit to Daily Pivot level.
It worked as a charm with a nice profit! Did you notice we combined another indicator named STOCH here?
Currency Pairs move too fast and are good for impatient people like me but it follows the rules always. That’s why I love forex.
Also commodities move along with technical more than Stocks in general. In short, keeping it simple, I like combination of indicators – Bollinger Bands, Moving Average, Parabolic SAR, STOCH, MACD and fractal.