A trade that I missed
I really regretted I did not notice this graph before. But there is no point of it.
Time to analyze it on the reason why I’d purchase the stock/ option of the stock if i’d have seen it
FMG (Fortescue Metal group), an Iron ore mining company that would rival RIO Tinto and BHP in Australia. BUY 18th Sept 2008
1.The trading volume has steadily increasing for the last 5 trading days.
2. On 16th Sept, there is a ‘false’ hammer candle stick on rising volume (slow) and on 18th the hammer reversal showing a significant change in volume increase despite a very bad day from US Market.
3. Watch stochastic from 11 and 17th of September. WHILE THE PRICE IS MAKING A LOWER LOW, THE STO INDICATOR IS MAKING A HIGHER LOW.
4. on 18th , while the price is suffering (hammer reversal), the STO is INCREASING!!!
5. Should purchase a little ,and if it is an up day the next day, BUY MORE