Ascending tops and ascending bottoms plays a very important role as a technical analysis in selling and buying of stock for stock investing as well as for stock trading.
Ascending tops and ascending bottoms are technical indicators shown in stock chart pattern. They clearly demonstrate the performance of a given stock over a period of time.
Ascending tops is applied to gauge the development of the price of a stock over a given period of time. This style of technical analysis is more concentrated on the high price of the stock, taking note of the highest point in the complete performance of the stock. The stock chart pattern comes into view when a stock frequently tries to make new highs. This frequent new high clearly identifies that the stock is in bull market condition.
In contrary, ascending bottoms takes a different view of the technical analysis. This style of technical analysis is more concentrated on the low price of the stock, taking note of lowest point of the stock. The stock chart pattern comes into view when lows of the stock trading range get progressively higher over a given time frame, and it is considered as a bullish indicator.
Both ascending tops and ascending bottoms are useful in evaluating the performance of any type of stock. The use of ascending tops and ascending bottoms permits the stock trader as well as stock investor to have a clear picture of any trends that seem to be occurring with the stock. Therefore, monitoring both ascending tops and ascending bottoms of a stock helps the stock trader and stock investor to understand whether it is a time to sell a stock, or to buy a stock or to hold on.
Monday, January 14, 2008
Ascending Tops and Ascending Bottoms
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