12 - MORE ON TRENDLINE

Trendline can be re-drawn.

See the charts below, they are the step by step trendlines re-drawn.

Fig. 23 is an example for uptrend.

fig. 23A

fig. 23B

fig. 23C

fig. 23D

Fig. 24 is an example for downtrend.

fig. 24A

fig. 24B

fig. 24C

fig. 24D

11 - FALSE BREAKOUT (WHIPSAW)

False breakout or whipsaw means a condition of price movement through an identified level of support or resistance that does not have enough momentum to maintain its direction. Since the validity of the breakout (or breakdown) is compromised, many traders close their positions and the price fails to make the sharp move that many were expecting. 


A failed break is also commonly referred to as a "false breakout". (from investopedia)

fig. 21

fig. 22

10 - PSYCHOLOGICAL LEVEL

Pyschological level is a level that has rounded off numbers. For example, 10, 20, 50, 100, 250, 500, 1000, 10000 and so on.


Sometimes it is called support psychological level or resistance psychological level.

fig. 19

fig. 20

Tips: It is better to buy above psychological level a little bit because the bid volume at psychological level usually very excessive. So, it is hard to get the stock at that level. On the other hand, it is better to sell below psychological level a little bit because the offer volume at psychological level usually very excessive. So, it is hard to sell the stock at that level.