I am currently stalking ReneSolar (SOL) using the weekly charts as a base. Let's first take a lot at ReneSolar (SOL) on the weekly charts. Stock is now bouncing off bottom channel of the uptrend line formed over 2 years. I missed the entry 2 weeks back and is now awaiting a second opportunity to build a position into the stock.
Having used the weekly charts to serve as a macro view of the overall long term trend of SOL, i will now turn my attention to daily chart of SOL to look for a good entry. For SOL, i will be looking for a reversal candlestick at around the 200day MA support. And if that fails, i will then get in at the next support via a reversal candlestick at the lower channel trendline of the symmetrical triangle.
Common mistake: Of cos the tendency is to try to anticipate the price at the support. If you are purely just looking at daily charts, its impossible to identify the area until the end of day when the candles are formed unless you are able to combine the 15min and hourly chart.
Having said that, trying to pick a bottom using 15min and hourly chart would result in many small losses over the long run but the reward ratio is definitely higher though. Personally, i think that traders using daily and weekly charts should refrain from looking at 15min charts or less as it will influence their decision to do quick trades and thus miss out the big swing.
Patience, my friends.
Common mistake: Of cos the tendency is to try to anticipate the price at the support. If you are purely just looking at daily charts, its impossible to identify the area until the end of day when the candles are formed unless you are able to combine the 15min and hourly chart.
Having said that, trying to pick a bottom using 15min and hourly chart would result in many small losses over the long run but the reward ratio is definitely higher though. Personally, i think that traders using daily and weekly charts should refrain from looking at 15min charts or less as it will influence their decision to do quick trades and thus miss out the big swing.
Patience, my friends.
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