Did This Trend-line Stop The Market?
- Posted by TheArmoTrader
- on December 14th, 2012
Did the trend-line below stop the market from going up a few days ago? Yes. No. Maybe. Everybody will have their own reason as to why a market stopped going down or up at a certain point of time. The point of this post isn’t to determine what stopped it, but to recognize the importance of Technical Analysis.
The market ran into a trend-line Could it have broken out from there? Sure. But it didn’t. That’s why if I was swing trading, I would likely not initiate longs on the 6th positive day of a run up as we ran into a trend-line. The risk-reward did not favor me.
$SPY - SPDR S&P 500 ETF
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Jerry Khachoyan is currently an undergraduate student at UCLA pursuing a degree in Political Science. He started trading in September of 2008. He concentrates on using technical analysis and reading the tape to enter the best risk/reward trades. The stock market to him is one of the greatest inventions by man.
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