Above chart is of ABFRL on weekly chart.
This is a simple trendline trading strategy, where the stock keeps respecting its support trendline and bounce back to higher levels, making higher lows and higher highs.
Here, the stock gave multiple buying opportunities to the investors, while it kept respecting its support trendline.
Here goes the interpretation:
1) No. 1 and 2 are used to draw the trend-line.
2) No. 3, 4 and 5 are the buying opportunities, where the stock respected and bounced from its support trendline.
3) One who bought at no. 3 would sell the stock at its previous high. In this case, buying at close of 166.75 and selling at 194.80, which returns around 17%. Same process goes when bought at no. 4 and 5.
The total returns generated from Feb 21 to Sep 21 was a good 62%, with this simple yet powerful trendline trading strategy.
But, later the stock didn't touch the support trendline, and went on to make new ATH. If it did touch the trendline, then its investors would have made another 20% :)
When one finds such a beautiful chart which gives simple trendline trading strategy, should really never let go, and trade with the trend. Also, one should wait with patience for the prices to reach the support levels and also wait for the same to close above the support trendline to get the confirmation of the trend.
I would say, there is no much difference between a investor and a farmer. As farmer cultivates and waits for a set period (say few months to years) to get the crops, same way investor should wait for a period, say months to years to reep higher gains. Patience is the key to success.
Hope this chart was useful with points mentioned.
Happy investing !
This is a simple trendline trading strategy, where the stock keeps respecting its support trendline and bounce back to higher levels, making higher lows and higher highs.
Here, the stock gave multiple buying opportunities to the investors, while it kept respecting its support trendline.
Here goes the interpretation:
1) No. 1 and 2 are used to draw the trend-line.
2) No. 3, 4 and 5 are the buying opportunities, where the stock respected and bounced from its support trendline.
3) One who bought at no. 3 would sell the stock at its previous high. In this case, buying at close of 166.75 and selling at 194.80, which returns around 17%. Same process goes when bought at no. 4 and 5.
The total returns generated from Feb 21 to Sep 21 was a good 62%, with this simple yet powerful trendline trading strategy.
But, later the stock didn't touch the support trendline, and went on to make new ATH. If it did touch the trendline, then its investors would have made another 20% :)
When one finds such a beautiful chart which gives simple trendline trading strategy, should really never let go, and trade with the trend. Also, one should wait with patience for the prices to reach the support levels and also wait for the same to close above the support trendline to get the confirmation of the trend.
I would say, there is no much difference between a investor and a farmer. As farmer cultivates and waits for a set period (say few months to years) to get the crops, same way investor should wait for a period, say months to years to reep higher gains. Patience is the key to success.
Hope this chart was useful with points mentioned.
Happy investing !
