How Perspective can be crucial in Trading

I review a lot of charts each week (both as prep and as the trading week progresses) and one thing is always evident: it matters what your perspective view of a chart is. I often mention the notion of “changing the lens” when viewing charts as this is so important to ensure that you don’t have a one-dimensional view of things.

To illustrate, I bring you several Daily charts of $NMFC for your review. First up is a plain Daily with no trend lines or support/resistance lines (just moving averages):NMFCNow let’s take a look at several charts with patterns on them:

NMFC_rising wedge NMFC_TL NMFC_breakout NMFC_Asc_TriAmazing huh.

 

 

  • tio mongo

    Appears absolutely no demand exists for this stock which the tape is being painted desperately by management buy back attempts is why no trend exists to true supply/demand pressure is being applied to price.

    • rholeman

      Conspiracy much? Just trade what you see, it doesnt really matter the reasons or people behind it. Price is the final arbiter.

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