YOU'LL NEVER TRADE ALONE

The first thing I'll always do when doing technical analysis on a stock is to determine the trend, whether it is in an uptrend or a downtrend. This will facilitate my decision making as well as formulate strategies.

The image on the left is the daily price chart for Yanlord Land Group, a real estate developer based in China.

As you can see, a beautiful descending channel pattern is formed when we draw the resistance and support that touches the lower highs and lower lows respectively. The price has failed to break the two trend lines, hence, they are strong resistance and support.

I'll probably make an entry near the support level and exit when it touches resistance. So easy? Of course not!