Charting with Apple stock (example)
Based on my previous post, I had mentioned using 2 tools specifically for my trade setup, RSI and chart patterns. I've attached an example of it based on $Apple (AAPL.US)$ chart.
For ease of understanding it's labelled 1) to 4).
1) identifying RSI bullish divergence (opposing lows in RSI vs in the actual price) & a symmetrical triangle pattern
2) since there is bullish sentiment, a buy signal arises at the breakout or one can wait for a correction back into the previous resistance zone(rectangle box)
3) usually the height of the symmetrical triangle is taken to forecast price pump, which is where you can take profits and sell accordingly
1) identifying RSI bullish divergence (opposing lows in RSI vs in the actual price) & a symmetrical triangle pattern
2) since there is bullish sentiment, a buy signal arises at the breakout or one can wait for a correction back into the previous resistance zone(rectangle box)
3) usually the height of the symmetrical triangle is taken to forecast price pump, which is where you can take profits and sell accordingly
There are many other strategies and this is just one which people can use in trading. Usually in 1hr/4hr timeframes for swing trade.
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