$FTC Solar (FTCI.US)$ Last time I asked a question about sup...
$FTC Solar (FTCI.US)$ Last time I asked a question about support and resistance levels. No one said that the stock teacher teaching people when these two levels does not work. We can't buy when they are not working, so we need to wait for it to fall lower, otherwise we will lose money.
This stock is a great example, because you can see that the support level (at the middle of chart) didn't work as it dropped a lot, and if ppl bought at that support level, they would have lost money! So why was the support level not working, can anyone answer this question?
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Studied psychology at Curtin University, Jazz dancer, political & business analyst, author. fb: Isabel Los
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Tonyco : So the support/resistance isn't a rule, and TA, in general, is psychological - people expect it to behave this way and become a self-fulfilling prophecy.
That said, because of this behavior, we take advantage of it. TA has more strength when it is normal volume levels.
What we have here is a 'catalyst', which is news or an event that is positive or negative, which drives price. During these times, typical TA loses power because people get excited and start behaving differently
Jazz Dancer OP Tonyco : I think you meant Technical analysis (TA) is a method of evaluating statistical trends in trading activity, typically involving price movement and volume. It is used to identify trading and investment opportunities. If not, please specify what TA means! I'm still a new trader, so I don't know much about the theory of stock trading. All I know is my observation, research, recording, comparison and analysis of stock changes. I use the skills I learned from my studies to trade stocks, and I would like to learn more about stock trading theory (if there is a theory) from experienced traders!
Tonyco Jazz Dancer OP : no worries! I meant technical analysis. safe journey to you!