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Apple shares (NASDAQ:AAPL) have been in a downtrend for about several months and will continue to do so for the rest of this year. The buyer is advised not to beat a bramble with their bare hand.
On the chart above, 2 Trendlines and the Relative Strength Index period 14 are used. The Trendlines have been used to map out a bearish channel on the chart. It can be seen that the upper and the lower Trendlines are sloping downwards, as the RSI period 14 is now under the level 50. The indicators thus confirm that this year has some bearish outlook in it. The only thing that can render this outlook useless is a situation in which the price breaks above the upper Trendline and closes above it, while going further northward. Then at the same time, the RSI period 14 would have crossed the level 50 to the upside, staying above it. Most traders would agree that trading is a painful mixture of good or bad, but the bad aspect is controlled and the good aspect is enjoyed by good risk managers.
This article is ended with the quote below:
“Then you want to start to work on conquering that under performance. A lot of times the answer is visualisation exercises. A lot of times the answer is just practice. I think a lot of people don’t understand that trading is a performance based activity. It’s not just knowledge based. So you could know a lot about a particular set up or the market but that doesn’t mean that you can actually execute in real time.” Mike Belafiore (www.tradersonline-mag.com)
