Sri Lanka Equity Forum
Dear Reader,

Registration with the Sri Lanka Equity Forum would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
Sri Lanka Equity Forum

Discussion Forum for Stock Market Investors in Sri Lanka

Submit Post
සිංහල පරිවර්තනය
Search
 
 

Display results as :
 

 


Rechercher Advanced Search

Latest topics

» UBC KEEP WATCHING
by MarketWch Yesterday at 8:41 pm

» Sampath Bank PLC - A giant awakening
by geeshanpradeep Yesterday at 1:52 pm

» FUTURE GEMS.....
by Ran49 Sat Apr 21, 2018 3:39 pm

» Orient Finance PLC- possible future star
by DS Wijesinghe Thu Apr 19, 2018 10:29 pm

» Companies to invest long term
by EquityChamp Thu Apr 19, 2018 6:56 pm

» The Stock Chat by EquityChamp
by glad Thu Apr 19, 2018 11:12 am

» Blue Chip Companies
by glad Wed Apr 18, 2018 7:22 am

» WHAT HAPPENED TO DIST?
by EquityChamp Tue Apr 17, 2018 6:51 pm

» JINS Share Repurchase
by EquityChamp Tue Apr 17, 2018 7:03 am

» LIOC N.........................
by EquityChamp Mon Apr 16, 2018 1:54 pm

» Abans finance PLC in deep trouble?
by Wimal Modawansa Fri Apr 13, 2018 8:03 pm

» Singer Finance worth to look at
by anges Thu Apr 12, 2018 6:37 pm

» Laxapana Batteries - A New Begining
by EquityChamp Thu Apr 12, 2018 7:10 am

» Kelani Tyres PLC - Invest for the future
by EquityChamp Thu Apr 12, 2018 6:59 am

» Teejay Jersey Lanka PLC - Depreciated Rupee had a very positive impact
by anges Wed Apr 11, 2018 6:36 pm

» Vallible One PLC - Financial Analysis
by anges Wed Apr 11, 2018 6:33 pm

» DFCC Bank - A very valuable counter
by EquityChamp Wed Apr 11, 2018 6:13 pm

» Ceylon Cold Stores - A valuable illiquid stock
by EquityChamp Wed Apr 11, 2018 6:11 pm

» Malwatte Valley Plantations PLC
by EquityChamp Wed Apr 11, 2018 6:00 pm

» Royal Ceramics Lanka - Diversified Tiger turned traditional manufacturing company
by EquityChamp Wed Apr 11, 2018 5:54 pm

Forum Disclaimer

The information contained in this forum have been submitted by third parties directly without any verification by us. The information available in this forum is not researched or purported to be complete description of the subject matter referred to herein. We do not under any circumstances whatsoever guarantee the accuracy and completeness information contained herein.

www.srilankaequity.com its blogs, forums, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not in any way be responsible or liable for loss or damage which any person or party may sustain or incur by relying on the contents of this report and acting directly or indirectly in any manner whatsoever.

Trading or investing in stocks & commodities is a high risk activity. Any action you choose to take in the markets is totally your own responsibility, www.srilankaequity.com its blogs, forums, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of this information. The information on this website is neither an offer to sell nor solicitation to buy any of the securities mentioned herein. The writers may or may not be trading in the securities mentioned.

You are not connected. Please login or register

Sri Lanka Equity Forum » Stock Market Charts & Graphs » What is a Pullback and Why it Might Indicate a Buying Opportunity

What is a Pullback and Why it Might Indicate a Buying Opportunity

Go down  Message [Page 1 of 1]

VALUEPICK

avatar
Expert
Expert

A pullback occurs when a security falls back from its peak price. It’s known in the day trading business as a buying set-up because many traders see a pullback as a pause in a continuing upward trend. Pullbacks often occur after a security experiences a significant price increase. New traders should be cautious as they learn how to trade pullbacks, as the drop in price could be the start of a trend reversal. But with practice, day traders can learn to differentiate between buying opportunities and trend reversals…and ultimately generate consistent profits.

There are a few different things to look for when identifying a pullback as a buying opportunity. Pullbacks are best used as a day trading set-up when many traders have just exited their positions, creating a low-risk buying opportunity. Below, please see an example of how to trade pullbacks.

[You must be registered and logged in to see this image.]


Notice how at each arrow a buying opportunity presents itself. The stock gets sold, and a strong uptrend emerges. The reason this uptrend is a quality day trading buying set-up is because it’s defined by higher pivot highs and higher pivot lows. The price should always be above the Simple Moving Averages (SMA), both the shorter-term SMA and the longer-term SMA. Traders looking for a day trading buying set-up should try to find a pullback that ends near a rising SMA.

Learning how to trade

 pullbacks will undoubtedly lead to profitable buying opportunities. At Wall Street Trading, getting new traders to understand day trading buying set-ups like pullbacks is key to launching a day trading strategy that works for you!

VALUEPICK

avatar
Expert
Expert

VALUEPICK

avatar
Expert
Expert

Bullrunner7

avatar
Manager - Equity Analytics
Manager - Equity Analytics
Great Article ValuePick !

EquityChamp

avatar
Moderator
Where is this guy now. Haven't seen anything from him recently.

Bullrunner7

avatar
Manager - Equity Analytics
Manager - Equity Analytics
Might have moved To another place

Bullrunner7

avatar
Manager - Equity Analytics
Manager - Equity Analytics
EC do you think it is a smart move to buy into Tokyo cement at the current price ? Don't you think it's a bit too volatile ?



Last edited by Bullrunner7 on Wed Aug 24, 2016 11:52 pm; edited 1 time in total (Reason for editing : Spelling !)

EquityChamp

avatar
Moderator
Look at the price appreciation of it. Came from 40s I think. Better to wait till the RSIs fall into 50s or 40s. thanks.

kapifm

avatar
Manager - Equity Analytics
Manager - Equity Analytics
EQUITY CHAMP,

please share your thoughts on BFL /AEL and DIST

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum