Friday’s market close clearly illustrated the relevancy of closing above or below the T-line. As seen in the Dow and NASDAQ, a close below the T-line has two significant factors. One, a close below the T-line dramatically improves the probabilities the sellers are in control and two, a close below the T-line shows the negation of the expected uptrend. The T-line should be a major factor when deciding to close a position. It is very easy for most investors to buy when they see a buy signal but have a very difficult time knowing when to close out a trade.
September 23rd Daily Market Comments
Friday’s market close clearly illustrated the relevancy of closing above or below the T-line. As seen in the Dow and NASDAQ, a close below the T-line has two significant factors. One, a close below the T-line dramatically improves the probabilities the sellers are in control and two, a close below the T-line shows the negation of the expected uptrend. The T-line should be a major factor when deciding to close a position. It is very easy for most investors to buy when they see a buy signal but have a very difficult time knowing when to close out a trade.