Wooding trading stock market education for stock market retracements

wooding trading stock market education for stock market retracements Stock trading system

Stocks often retrace 38%, 50%, or 62% of the previous move before resuming the previous trend.

For stocks rallying, support often occurs at the 38%, 50%, or 62% retracement level before resuming the previous rally.

The Standard & Poor’s 500 index finding support at the 38%, the 50%, then the 62% retracement levels before resuming the uptrend. This example is more of an exception than the rule. Typically, a stock will find support at one of the levels, then resume the uptrend.

Motorola making a near perfect 50% retracement of the previous rally, setting up a low risk opportunity to buy.

For stocks declining, resistance often occurs at the 38%, 50%, or 62% retracement level before resuming the previous decline.

After the dramatic price drop from $115 to $60, Microsoft retraces 38% of the decline for a short sell opportunity

P ick your favorite stock you want to analyze. Then review the chart looking for retracements. You’ll surprise yourself with the numerous retracements you find.

Get the stock trading ebook that picks the biggest stock market gainers
Packed with all the criteria for identifying, trading, and profiting from the stocks ready to make the biggest moves!

Rate article
Wooding Trading
Add a comment