Stock prices bounce around all the time, but a “buy a bounce” strategy involves buying a particular security once the price falls toward a certain level of “support.”
Support refers to examining past trading patterns using the high and low price of a security over a specific timeframe, usually between 50-200 days. The support level is then determined from the lowest daily price in this timeframe.
So when the price reaches (bounces off) this support line, it’s at least theoretically time to buy, since there is an expected increase from the low support level.
Bounce. Like Silly Putty.
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Finance: What is Breakaway Gap?7 Views
Finance a la shmoop.. what is breakaway gap? well Letterman has one yeah that but [David Letterman's front teeth appear]
here we're talking about a trading pattern like on a stock chart like this
thing where the breakaway gap is a sudden change in trading pattern like
you're walking along just fine and easily recognized in comfy double bottom
pattern like this but then blam the company reports an awesome quarter in [Stock chart dramatically rises]
the stock zooms upward outside of the pattern it goes from here to here and
well now what like there's no pattern yet so what do we do well depending on
your lean prayer might help is the stock heading down now to normalize or up more
because now everyone thinks it's the next Google and wants to own it for the
long run so breakaways go up like this and
sometimes they go down like this but either way they break away from a [Arrow points to stock charts breakaway gap]
pattern and yeah, clearly this was not the next Google! oh well
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