How To Profit From Interpreting Stock Market Chart Patterns?
We present an exceedingly simplified eventuality to explain the psychology behind chart patterns and give you a touch of how it’s possible for you to profit from a technical research of translating stock market chart patterns. Imagine a stock that’s nearly at equilibrium let’s call it MSFT. MSFT has been trading between $19 and $20 for a numbers of weeks with a mean daily volume of 100,000 shares. If a stock is trading in such a narrow range, there are nearly as many investors who need to own it as there are those who need to sell it, so anytime a buy order come in for a hundred or five hundred or one thousand shares, there’s somebody prepared to sell that many shares. Manifestly , when there’s a much supply as there’s demand, the stock doesn’t go anywhere. It moves within narrow price bracket, which is named basing. Now shall we say the word on Wall Street appears that MSFT has a good quarter. Upon hearing this rumor, at least 1 or 2 new consumers will wish to purchase shares, and cur
