Beginner reversal question

Discussion in 'Technical Analysis' started by mad_badger, Feb 6, 2008.

  1. Newbie question re: the attached picture which has notes on it.


    This just happened about 30 minutes ago. I was watching the solars fall while LDK reversed and rose. This confused me, and I wanted to see how far this uptrend would go against the grain.
    After it was all done, of course, it is easy to draw in trend lines and resistance and draw "obvious" conclusions. Except it wasn't obvious, and I didn't short it at the peak (#2) because I thought at the time it could possibly keep trending up, against the sector and market.

    Perhaps some of the seasoned traders could comment if my analysis in the picture was correct, add anything? How should I have looked at this while it was happening? I am trying to use less indicators and learn how to read price behavior, so helpful comments about that would be especially useful to me and other beginners.


    Edit: can't attach pic, will find 3rd party host, please hold on.

    Edit: should work now.
  2. Taken from:
  3. Great entry with low risk, too.
  4. speres


    You need to be consulting more than 1 tf. draw in res and tls first and then observe price action around them.
  5. speres -- I don't know what "tf" and "tls" are.


    Things went better today. I removed all indicators from my chart except for volume, and focused just on price behavior. I didn't hesitate this time when I saw STP not able to push through that resistance, so I went short. I prematurely covered, as you can see, but that is O.K. b/c I learned several things from the trade and boosted confidence. Not a trend reversal, but still thought worth posting for other beginners to see.
  6. speres


    tf = time frame
    tl= trend line