Tuesday, September 24, 2013

Equity:816.74 - Just reading and watching (AUD)

My Kathy Lien's book arrive. Quite optimistic about the knowledge I can gain. It is always great to keep reading and learning, and not think that you can stick to a winning formula forever. If I want to become a successful trader, I got to read alot harder more than most people.

Besides reading, I am also watching the market, and see if I can apply anything I learn from the 'Naked Trader' book. Below is my watching activity.

Step 1

Using the Weekly chart, draw out the resistance lines which are obvious and close to the current price. This is to get a better picture of the story.

Step 2

Zoom in to Daily charts again. I tried changing to Hourly charts, and it just don't make sense to me. Daily charts tell the best story for a naked trader.

When you zoom in to Daily chart, just see how the price reacts when it is closed to the resistant lines which you drew from the weekly chart. Watch out if there is any Kangaroo Tails or Big Shadow developing around the resistant zone.

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