Dear Readers, do you still remember this earlier post on "Wyckoff method of technical analysis on BAC" ?
It suddenly dawned on me that BAC is back at its original "Last Point of Support" on its daily charts. I have many friends who are interested in buying BAC for the long term and this could be a good entry with stop loss, of course. However, it shoud also be very interesting to see how would BAC react at its near term resistance of $12.80.
Last Point of Support (LPS): The ending point of a reaction or pullback where support was met, also known as a retest of support where long position can be initiated or to add to profitable ones.
Who is Wyckoff and what is his method of technical analysis?
Richard Wyckoff, one of the great traders in his days, identified trading ranges as places whereby accumulation and distribution develops to build a cause for the subsequent change of trend in movement of price actions. Trading range are places whereby there are equilibrium between supply and demand and if judged correctly, would allow traders to profit form the magnitude of the move within and out of trading ranges.
It suddenly dawned on me that BAC is back at its original "Last Point of Support" on its daily charts. I have many friends who are interested in buying BAC for the long term and this could be a good entry with stop loss, of course. However, it shoud also be very interesting to see how would BAC react at its near term resistance of $12.80.
Last Point of Support (LPS): The ending point of a reaction or pullback where support was met, also known as a retest of support where long position can be initiated or to add to profitable ones.
Who is Wyckoff and what is his method of technical analysis?
Richard Wyckoff, one of the great traders in his days, identified trading ranges as places whereby accumulation and distribution develops to build a cause for the subsequent change of trend in movement of price actions. Trading range are places whereby there are equilibrium between supply and demand and if judged correctly, would allow traders to profit form the magnitude of the move within and out of trading ranges.
No comments:
Post a Comment