mardi, juin 17, 2008

Sensex

How do me know when the trend has changed?
I use a simple method : the 1,2,3 trend reversal.
On this long term weekly chart of the Sensex (India) we can clearly see that the uptrend line was broken in March 2008.
This was the first part of the method.
The second part of this method is the pull-back and the lower high happening in May.
Part 3 which complete the reversal pattern is a lower low.
For this we have to wait for an eventual break below the support zone (dot red line).

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