Stock Trend Line
A stock trend line is a technical analysis indicator consisting of at least three points plotted on a chart for security to form an upward sloping or downward sloping trend line. You can use the slope and direction of the trendline to forecast future prices.
Short selling signals are often derived from these lines by considering where the price has broken below a previously identified support level, reaching toward a new resistance level which may indicate further price declines ahead. Basing the trend line on the closing price for candlestick charts can produce a more reliable line.
The Relative Strength Index
(RSI) measures the magnitude of recent gains and losses over a specified period. If the RSI is between 30 and 0, the security is overbought because investors are buying aggressively. If it is between 0 and 30, the asset is oversold and primed for a rally. …Continue reading