I've a question /biz/. i Know techincal analysis is mostly

>>1396189
when you see a double top or bottom, realize that statistically, price is more likely to make new lows or highs since it's already trading around the previous high or low.

you can see how in both charts price has recently made a new high and low.

most people don't actually know what about mechanical analysis.

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38KB, 296x494px

>>1396189
I would buy both instruments as represented on the charts you show. I would buy the top one and target $24 to start taking profits.

On the bottom, I would buy and target 2147.

I use stops and that's why I can still trade opportunities as they arise.

>>1396189
A quick google search can give you your answers

Stay away from the top on
Buy bottom one once it goes above the small high between the lows with a stop loss at mentioned lows

>>1396189
A: broke a new high which is a resistance level you should expect stops right above that level which will cause price to shoot up quickly. You should wait until price returns to the resistance level after blowing through stops to see if it holds. If it does than go long with a short stop below the resistance level, since buyers are in control expect the upward trend to continue. This chart shows an upward trend so your bias should be to buy until the trend is invalidated. If the price fails to break the resistance level you can sell with a short stop above the resistance level. Beware that by going short you are going against the trend. I would use Fibonacci retracement tool with 100 and 200 SMA to give me possible levels where buyers may come back to have another go at the recent high or were sellers will overpower buyers and invalidate the trend.

B: It's in a downward trend. Its last bounce looks like it went up to 23.60% retracement which indicates a very strong trend. Same rules apply as A.

In chart A I assumed the SMAs were at the bottom turning upward while in B I assumed the SMAs were above turning downward. If the SMAs were in reverse order than A and B would indicate a correction rather than a trend which would change the buying and selling bias. OP you need to add SMAs to get a better picture of were price is relative to its past performance in order to analyze the chart properly. Also you should use candle sticks or monkey bars since high and low prices give you important information about price action.

>>1396189

Saying that technical analysis is a meme is like saying the EKG is a meme.

Would you trust a medical doctor that can't read a EKG? No. You shouldn't trust a trader or investor that can't read charts either.

thank you for your input, appreciated