Change the Lens

I am a big fan of putting energy into understanding a variety of perspectives that exist regarding each publicly traded company. Bear, Bull, Neutral, TA person, FA person, etc. I want to understand them all.

When it comes to stock charts, I really work hard to use a variety of lenses which includes timeframe but also includes the use of common Trend Lines. For an example, I bring you two Area daily charts on PWR (Quanta Services):

This first chart above shows a box surrounding most of the action between the 21 and 22.50 price level. What else do you notice here? Well, I see a Head ‘n Shoulder pattern developed there using the bottom of the box as the neckline.

Now for another perspective, with just a Trend Line:

With this chart above, a declining trend line is the target for price. Note the increasing volume as a nice tell for the support of this move.

In summary, use a few different lenses to be sure to get the clearest picture you can.

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