A picture is worth a thousand words, that the old maxim goes. This maxim applies to diagrams.
Tracer is the graphic representation of the behavior of a stock over a period of time: the cards you can afford a bird’s eye view of history, behavior, often repeated, or be up close and personal with the period being chosen for you.
The base maps are bar and line graphs. If you’re new to the trade, not a game Ph. D. in statistics, it is the modest tables way to go. In fact, even if you are an experienced operator, a bar and line graphs probably still a special place in your trading life. These cards are simply indispensable.
Stocks have been four different points in the trade one day. They are: opening price (O), closing (C), absolute high price of the day H () and the absolute minimum of the day (s). All these items are listed in the tables.
The opening price (O) is the first trade of the day. individual traders tend to place orders when the market opening, in response to the end of the previous day. This price is usually based on emotional decisions, and could also show how the first half or the whole trading day will be to pan. The closing price (C) is the last day of operation. It is generally institutional investors that control late in the day. Other than the opening price, closing usually include representatives of decisions by reason and research, did not feel well. The low (L) and high (H) of the day are quite explicit. The difference between high and low in the tables is called range.
not look clean enough to these five points on the maps is to plan future operations. You must also ensure that influence how the control and commitment cards and see what the trend is likely to go forward.
Control
Business, you have two parties: the buyer and the seller. If there are more buyers than sellers, resulting in a higher demand than supply. This imbalance is the upward pressure on stock prices that exist until the imbalance is corrected result. If there are more sellers than buyers, which means that the supply of stocks is greater than demand. This leads to pressure on the share that is made until the balance is again. Who has the pressure, said to be in control. When you’re done here in the short term, it is especially important to know how to make a change of control on the ground in the interpretation of maps.
Commitment
The market response to rising or falling share price reflects the commitment. How shares are listed, you can see something about the emotions of all operators. If, despite these high prices trade show they believe in the future of the stock continues, the result is a high price for the day. This bullish trading. The reverse is true for trade down. He tells us that sellers are worried about the future, so they continue to sell their shares, despite falling prices. It is trade down.
Completion
Draw is not a crystal ball. Chart not predict future market behavior or to predict stock prices. What cards is very good, however, give you a precise and accurate medical history and patterns tend to repeat themselves. In the story has become a trend, and this trend in your data to extrapolate projections of market behavior and likely future changes over the basic actions. Therein lies the greatest value in using maps.