Buy the Dow –the analysis

Posted on Sep 28, 2009 by in Free Letters, Letters

Let us now discuss some of the most fundamental principles of technical analysis.  Trendlines.  Trendlines could well be called signal lines, and sometimes we do.  The breaking of tendlines is always significant.  The longer the trendline, the more important the signal.  Buying on the break of trendline A here is obviously extremely aggressive -- and the most profitable, but as we know there is a high degree of risk that the trend will not continue.

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