I'm fond of straight line graphing. Because its simple. Easy to understand. And most of the time- its right. Check out the two graphs. Chartered and Jurtech.
Of course there will be other charts which will show otherwise. But in share trading, the main goal of the trader, imho, is to protect his capital+profits. If he doesn't do that- then eventually he would have lost the game.
Chartered- it was a great graph last month. Plenty of good volume and support. So I got in at $1.45. But when the MD or CEO came out and said it wasn't involved in any takeover discussions and they had a piss-weak report- bang - should have got out. Trouble was already brewing on the chart- when it deviated from the trend line.
I started selling at $1.43 which was the correct thing to do. Then I got excited by the sudden last push towards $1.45 and got back in again. Eventually, I exited from my positions at the dismal price of $1.34 - left it too late. Its tempting to jump back in at this level $1.26. But for now, I'm leaving it alone. I'd say its a buy if it ever hits $1. But not a stock for long term holding.
Jurtech- seemed quite interesting. I got in at 95 cents a few weeks ago. Straight away it powered to 98 cents and seemed to want to break pass $1.00. It didn't. I bailed at 95 cents, thankfully.
I don't mind holding the stock if it strays away from the straight line uptrend for a day or so- but any longer and I get nervous.