Professional Documents
Culture Documents
Or
How Professional Traders Think
as understoodby
W.H.C.Bassetti
GoldenGateUniversitv
FI 4985
e. Evaluatecandidates-(watchedstocks)
Match stockstatusto market status
Find strongesfsfocksin bull and weakesfin bear
market
4. Determineeachstock'spreparednessto move
Trends
A channelmodel is usedto analyzetrends ;
An uptrend hasa demand tine and an ouerboughtline
A downtrendhas a sLrypIAline and an ouersoldline
. A neutral or trading rangemarket has support and
resistancelines
Determineeachstock'sreadinessto moveby
Analyzingbar chartsand p8d chart previouslyselected
bybuy/sell tests
Supplycontrolsreaction--wideningrangedown,weaker
closes,increasingvolume
supply may becomeexhausted,ordemand
at lower levelsand overcomu,arppty---'E's urc''
may develop
Recapitulationof methodology
Find the stahrsand locationof the market at present
And based principles of uend analysisdetirmine
9l
Probablyimmediate fuhrre trend
Determineeachstock's preparednesstomove