SELL: Wait for overbought indcator
values in downtrend markets.
Not exact matches
Fuel prices have been
in a
downtrend since June, losing nearly 50 percent of their
value, on the back of a price war waged by OPEC (the Organization of Petroleum Exporting Countries) against the U.S. shale producers and as demand from China decreased amid slowing growth.
However, the market has it
valued much more like Deckers (DECK), which saw a 17 % decline
in revenue over the past twelve months and has a long - term
downtrend in ROIC.
Whereas,
in a
downtrend, «
value» is seen at resistance, since the price has rotated higher within the broader
downtrend; so it's a good «
value» to sell from resistance
in a
downtrend.
In a downtrend, «value» means resistance, in an uptrend it means suppor
In a
downtrend, «
value» means resistance,
in an uptrend it means suppor
in an uptrend it means support.
Traders can watch the 1 hour and 4 hour charts along with the daily, for price action sell signals on any rotation back up to resistance /
value,
in order to trade
in - line with the
downtrend in this market.
Therefore, we were looking for price action sell signals on retraces back to
value / resistance
in order to trade
in - line with the
downtrend.
On the other hand, a stock that continually drops
in value, or is
in a long - term
downtrend warrants caution.
Tim also looks at a Central American airline that's seen a huge
downtrend in its stock, making it a good
value.
Over the last few weeks, most of the bitcoin futures contracts have been bearish as traders forecasting the recent
downtrend in value «shorted» the market.