Don’t Be Fooled By Candlesticks!
Some traders are too
much obsessed to pick the bottom. Needless to say, it is always
easier to go with the trend. Before looking into the minor elements on the
charts, traders should always find out the trend of the stock first.
As you can see on the daily chart, Adobe Systems (ADBE) has a clear support
level near 40. Notice the stock formed
hammers two consecutive days, and it appeared the trend change was imminent. But
remember, the trend is down. Â
11:14:02
Intraday Setup Alert
Adobe Systems (ADBE) is forming a bear flag just below the declining
20-period EMA on the 60-minute chart. ADBE is now trading at 40.20, down 0.15.
There were two obvious sell entry points. The first opportunity came when the
stock fell out of the bear flag, and the second one was the breakdown below the
support level.
Don’t try too hard to pick the bottom. Go with the trend.