What’s the plan, Stan? Let’s take a look at our trade price response.
A trade price response is a trader’s game plan for a security once that security reaches (or fails to reach) a certain level. We’re talking resistance and support levels, which can be drawn based on multiple technical analytic methods.
For instance, say a security is doing its thing. The price is going up and down. Based on one trader’s technical analysis, he’s got his support and resistance levels for the stock; let's say the resistance level is $20 above the stock’s price. The trader decides that if the stock hits that level, $20 above its current price, he’ll be in it for the long haul. If the stock keeps bouncing around, or even slowly rising towards that $20 increase, but doesn’t make it within a certain timeframe, he’ll enter a short position on the stock, i.e. it's not worth it for the long haul. This is the trader’s trade price response.
What’s the point in using all these technical analysis tools and gadgets if you don’t know what your goal is with them? You’ve gotta combine your tools with your trade price response to have an action-oriented plan.
Related or Semi-related Video
Finance: What are Triple Bottom and Trip...2 Views
Finance allah shmoop what are triple bottom and triple tops
All right well this is a triple top It wants
to break out The stock was trading down here around
five bucks a share in and glam o it went
up And yes blam o is the name of the
company's new anti constipation drug a huge hit So it
went up up up to hear it Fifteen bucks tripled
in value in just a few months but then sober
reality began to hit the investing community There simply wasn't
enough constipation to go around So the stock began to
flag and traded down teo here this level at twelve
bucks But then glam o again released big news a
partnership with manish of its grandma tsa and the american
cheese manufacturing association So the stock raced again to fifteen
But no there just wasn't enough enthusiasm from buyers pay
more than fifteen bucks a share for it So you
know that's all despite this newly created a kind of
market So the stock sank back to twelve only to
then have investment interest from procter and gamble owners of
sharman who bought five percent of the company at thirteen
fifty ish year and left a lot of investors thinking
surveyed by the whole company complete with its product line
of anti constipation drinks Waymo glam Oh thankyou memo But
alas the investment community would not pay up past fifteen
to share and the stock flagged again sinking back to
twelve having created a triple top and needing something to
make things really start you know going So yeah that's
a triple top What about a triple bottom Well a
triple bottom and basically just the same thing in reverse
like this keeps hitting a low point looking like it's
going tio bottom out further But then it recovers on
the subject of bottoming out well glam o is now
available in new chewable gummy form Yeah glam o so
you never have to worry when your bottoms out
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