August 27, 2019
TRENDS are a “fitting” topic. Remember the parallel bars in gym class?
Easy for some, difficult for others, always one arm slipping before the other and down we go. Trends are like that. Something changes up or down and the Trend changes.
Cannot deny that this is a TREND, in the defined as an INTACT TREND.
The fact that two different time frames identify it the same, as an
INTACT TREND, so below is the same chart on a Weekly basis instead of the first one, which is a daily chart.
So seriously folks, is there really a dime worth (not silver) of difference between these two-time frames? In my world, I think not!!
The only thing you could discriminate upon examination of these charts, is where you decided to pull the trigger, like on this one:
Depending your risk appetite, and itchy trigger finger, sometimes you get the jump on the trend, say with PGM, buying it as it broke out of the trading range, which topped out at C$0.60. More burnt fingers, but bigger profits, is the rule of balancing risks against rewards
So now you have another tool, “Parallels”
TECH TALK TUESDAY
August 27, 2019
To review, here are the tools we had from before today:
TOOL #1 in your Profit Kit is B.U.T.,“BUY UP TO”.
TOOL #2 in your P-Kit A.C.M.E. “AFTER MARKET CLOSE EXIT”.
TOOL # 3, should be P.E.T.: “Probable Estimated Target” – now you can decide if you want to take a profit, or stay in, odds of getting stopped out increase as you increase your A.C.M.E., with price moveups.
TOOL #4 will be M.A.C.D., “Moving Average Convergence / Divergence.” – You measure the acceleration in your movements.
TOOL # 5, PARALLELS – your way of watching the lesser trends inside the main trend and their direction. You can do it on Stock Charts on in DGS Letter, or with a set of parallel rulers on a basic price chart.
So here we have TOOL # 4 and #5
MACD & PARALLELLS. Tools 1-3 relate conditioning your buying and selling to use advantageous means, and one more on the way later as well.
MACD and PARALLELLS give you the guidance, hints and clues, as to when to act and what to do.