OK. It is my turn to bullshit: (all price are closing price)
example: AAAAAAAAAAAAAAApple Inc (aapl)
4-19 new low at $390.53, follow by two up days with good volumes and went up to $463.84, this is previous high made on 3-25 at $463.58, later it became resistance point. from $463.84 it dropped all the way to $393.78 (on 6-27) and went up 3 straight days with good volumes, this means that $393.78 or 390.53 is the support point.
Now, buying at 支撑线: From $393.78 and after 3 straight up days with volumes, it pulled back little bit with low volume, and on 7-9 it up again with good volumes and closed at top of the session, it made the buy point at $422.35! when to take loss? 1.If it close below $413.86 in the next day or two. OR 2. Close price below $393.78 ! when to take profit? depend on Mr. Cheng, if I am lucky enough to stay here after this post, we talk about that later.
Second, buying at 阻力线: Let's forget about the 支撑线, apple again on 8-5 , it break out the previous highs set on 3-25 and 5-8 and stayed at $469.45, although the volume on the break out not that good , it still made the buy point (from 3-4 to 8-5, it makes sense to give it a shot). When to take loss? drop back to below $463.58 with heavy volume, or 3%-5% off your buy point, if it was 3%, it would be sold on 8-9 at $454.45!! if you seeing it go back above $463.58 again with good volumes the next day, you would buy it back, but that is anther case.
Last, buying at 突破:Again, apple. on 8-13 it break out the base with good good good volumes, so take position at $489.57. Sell rules: 3%-5% off buy point. in this case, opening price on the buy day, $471.03.
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