Hello everyone, let's go there, because today I brought a controversial topic to the debate. I hope it is of some value to the community!
Do you really know how to "create and use" an uptrend line?
-If so, very good, because I firmly believe that you are on the path to success. However, if your answer is no, this analysis will certainly give you an "initiation" for future studies.
To better orient ourselves, we must keep in mind that assets move along three distinct timelines, and they are: Long term, medium term and short term.
-Assets and economies need these "stages" to mold themselves to situations that happened in the past.
-Faced with the events experienced, the "best decisions" are made with a view to the future (but they are not always the best decisions).
-After decisions are taken, the fruits are usually harvested some time later, which can vary from 50 days (through money printers and zero-cost loans) to more than 1 year (creating laws, tax incentives, etc.) depending on the situation experienced in the past. (crisis size).
I will cite as an example the current president of Brazil Luiz Inácio LULA da silva about a crisis experienced by Brazil and the world in 2008, and his speech was more or less the following: "the crisis is a tsunami in the USA but, if it reaches the Brazil, will be 'marolinha'.
-With that phrase said, we can easily deduce that the decisions taken by Brazil and the USA were completely different, because the Brazilian "little wave" in the end turned into a giant wave, and in 2015/2016 these fruits came very bitter. But we cannot forget that the US is also in crisis (interest rates) due to decisions related to infinite money printers. Yes, printing money generates inflation. (lol)
Now let's talk about the uptrend line (UL) and better unraveling these lines, we will have the following:
a) Long-term. Monthly weather chart. (lol)
b) Medium term. Weekly chart time.
c) Short term. Daily time chart.
We should always use as background the important points (events) that occurred in the analyzed chart period, and with that we connect two "important points from the past" to know where prices can go in the present.
See in the image below how many bullish trend lines (UL) the monthly chart (SPX - ES!) showed us when we started from an extremely important fund, the SUBPRIME, which occurred at the end of 2008 and we linked this fund to other funds that were equally important at the time!
By drawing these important parallels (bottoms) we create an UL (uptrend), and it will serve as a "compass" for future decision-making.
Now I ask you a question and I hope you are sincere: What do you find more reliable, a price average or an uptrend line?
And another question. What will the next crisis be? Perhaps the answer may lie in this graphic analysis.
This graphic analysis is really worth reading.
Do your analysis and good business.
Be Aware, If You Buy, Use Stop Loss!
See below for other graphic reviews!
Do you really know how to "create and use" an uptrend line?
-If so, very good, because I firmly believe that you are on the path to success. However, if your answer is no, this analysis will certainly give you an "initiation" for future studies.
To better orient ourselves, we must keep in mind that assets move along three distinct timelines, and they are: Long term, medium term and short term.
-Assets and economies need these "stages" to mold themselves to situations that happened in the past.
-Faced with the events experienced, the "best decisions" are made with a view to the future (but they are not always the best decisions).
-After decisions are taken, the fruits are usually harvested some time later, which can vary from 50 days (through money printers and zero-cost loans) to more than 1 year (creating laws, tax incentives, etc.) depending on the situation experienced in the past. (crisis size).
I will cite as an example the current president of Brazil Luiz Inácio LULA da silva about a crisis experienced by Brazil and the world in 2008, and his speech was more or less the following: "the crisis is a tsunami in the USA but, if it reaches the Brazil, will be 'marolinha'.
-With that phrase said, we can easily deduce that the decisions taken by Brazil and the USA were completely different, because the Brazilian "little wave" in the end turned into a giant wave, and in 2015/2016 these fruits came very bitter. But we cannot forget that the US is also in crisis (interest rates) due to decisions related to infinite money printers. Yes, printing money generates inflation. (lol)
Now let's talk about the uptrend line (UL) and better unraveling these lines, we will have the following:
a) Long-term. Monthly weather chart. (lol)
b) Medium term. Weekly chart time.
c) Short term. Daily time chart.
We should always use as background the important points (events) that occurred in the analyzed chart period, and with that we connect two "important points from the past" to know where prices can go in the present.
See in the image below how many bullish trend lines (UL) the monthly chart (SPX - ES!) showed us when we started from an extremely important fund, the SUBPRIME, which occurred at the end of 2008 and we linked this fund to other funds that were equally important at the time!
By drawing these important parallels (bottoms) we create an UL (uptrend), and it will serve as a "compass" for future decision-making.
Now I ask you a question and I hope you are sincere: What do you find more reliable, a price average or an uptrend line?
And another question. What will the next crisis be? Perhaps the answer may lie in this graphic analysis.
This graphic analysis is really worth reading.
Do your analysis and good business.
Be Aware, If You Buy, Use Stop Loss!
See below for other graphic reviews!
