The picture above is an example of a support line and you can see that yahoo stock is in an uptrend. Combined with these two indicators you can create a moment to step in the trade for yourself.
Some traders buy the investment object before they hit the support line but smart traders buy the investment object when the price hit the support line and bounce back as expected in a trend.
Why is it smart to buy right after the bounce on the support line?
Well, if you buy the investment object before it hits the trend line, there is still a chance that you can lose a lot of money. The reason for that is that you don’t have the guarantee that the trend is still intact.
In the world of technical analysis there are many more indicators that you can use to increase the chance of winning on your investment. It’s too much to cover it all in one step. But by using these two indicators of the technical analyses you can already start to make some money.
On behalf of our staff we wish you good returns on your investment. Keep visiting our website we will post frequently blogs that can increase the winnings for your investment.