Slope of Hope Blog Posts

Slope initially began as a blog, so this is where most of the website’s content resides. Here we have tens of thousands of posts dating back over a decade. These are listed in reverse chronological order. Click on any category icon below to see posts tagged with that particular subject, or click on a word in the category cloud on the right side of the screen for more specific choices.

Charting – Have It Your Way

By -

Of the many lines one can place on a chart, the objective is to help determine price movement – what is most likely to happen next – in an effort to execute a profitable trade.

Trend lines can be placed on a chart to show an uptrend or downtrend.
Horizontal lines can be placed based on high and low prices, on fibonacci retracement levels, and to note price gaps. Chart patterns, such as triangles, wedges and pennants, can be drawn by the chartist. All of these lines drawn are meant to offer support and resistance levels.

Whatever annotations we place on a chart they are an effort to assess the probabilities of a directional move in price. Assessing price action is based on maintaining or breaking support or resistance. Breaking support or resistance lines may well indicate a change of price direction [false breakouts notwithstanding].