Big Yellow Group

This is looking bullish.. crept above 200ma and also has a potential 123 low short term. If this breaks out then could head towards 1172

Thanks mate. I will put the old thinking cap on. Loads to learn here and all good so far.

Remo,

Thank you very much for the encouraging words by the way. I have been out the game for a little while, concentrating on some other things and taking a step back. Feeling myself ready to start looking more often etc, and kind words like that are encouraging to hear. Cheers.

boxhead1 wrote: Hi, I am pleased that Big Yellow has caught your eye. I have had some good success with this trading a nice daily channel in the last couple of months. I too have been wondering what's going on with it at the moment. It has reached some heavy resistance now but it did punch right through it on Thursday I think it was. What I would like to know is what is the best way to tell if it is likely to continue on the up as opposed to sinking back down again ? I know that there are no certainties and only probabilities. For example the RSI is right at the top therefore usually that would put me off buying.

So what are the pointers I should look out for ?

I know that this is a bit of a beginners type question but do bear with me please. BYG is a bit of a favourite of mine and has been good to me on the whole. I would like to think its on the up.

Thanks

Hi Boxhead,

As you know, indicators only help to give an "indication" as to what to expect - but in trading, as in life, nothing is guaranteed, in fact far from it - some say its 50/50 no matter what, although I don't quite buy into that, but its a good premise to keep in mind.

For me, the key to trading is response. Waiting on particular set ups, and then responding to that price action through a trading strategy.

Remo's post after mine is a good example. I have shown the chart, and possible resistance levels and price targets on the bearish side - BUT - if this does break, then having a trading plan in place for that is the real key. So no matter what the price does at this level, because it is SUCH a critical level, having a plan for both bearish and bullish set ups is the key.

So the only thing that is going to tell you if it is going to break on the upside - is really the price action. I have shifted my paradigm to use indicators more for timing of entries and exits now - although I also use RSI divergence as a key rule to a reversal trend. I think Jackozy has said it before aswell, but I think the 3rd touch on a diverging RSI trendline is a good entry point for a trade.

Thamks Remo, love the videos by the way

if your using indicators then look for divergence to give you a clue.Its not guaranteed but it does help.Especially around a good resistance area.Currently there diverging from the price so that hints at this may not breakout yet.Like i said nothing is guaranteed.
My favorite indicators are ,RSI,OBV,Macd. Try not to use too many as that will confuse you even more.