I use a lot of different themes within my Blog and here are some in no particular order:
- The RSI Buy
- Look Both Ways
- Various subjects that deal with timeframes and chart types
What I would like to highlight today is the Look to the Left concept – and why it is important (regardless of YOUR timeframe). For example, let’s look at an hourly chart of NRG (NRG Energy):
Price bottomed near the 14.25 level and is bouncing with a close at 15.40 to end the week. A nice play for those that took this within this timeframe. However, let’s pull out to the Monthly timeframe to get a really good feel for where the stock has come from – the “Look to the Left” view:
Has burned a lot of “energy” just to get back to October 2008 prices. If you are playing the current bounce, then well done. Just be sure to always take a peek to the left to see what those with other timeframes are looking at.
Have a good week.