Important top and bottom chart signs

For the top signs, make sure that the price can immediately drop for a measurable amount after you sell.
  • double heads M pattern
  • V pattern bottom line is broken down with new lower low
  • divergence for the top
  • Wait to sell at about or above the V pattern bottom line, when the price is in a UP wave

For the bottoms signs, make sure that the price can immediately climb up for a measurable amount after you buy.

  • double or multiple bottom W pattern
  • /\ (the reversal V) pattern top line is broken out with new high higher
  • divergence for the bottom
  • wait to buy at about or below the /\ pattern top line, when the price is in a DOWN wave

The KEY is to buy a stock when it is at the end of a DOWN wave, and to sell a stock when it is at the end of a UP wave.

Other technical analysis tips can be found here as well.

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