Charts That I Avoid (Part 1)
For those who have learnt classical music, you will recognise that the music notes above are staccatos. It is a style of playing notes in a detached, separated, distinct manner. See the similarities with the charts now? The 2 charts have gaps all over the place and have candlesticks that are detached from the overall chart, just like how a staccato is played!
I am always reminded of staccatos whenever I see these charts. And these are charts which I do not use for swing trading or holding overnight positions. Avoid them at all costs! They are extremely volatile and there's no telling which way they could gap. Coincidentally, these 2 companies are also in the very sectors that I don't enter for swing trading. BHP- in resource sector and NVS - in drug manufacturing sector. In fact, I avoid all energy and commodities sectors as well as pharma and biotech for swing trading. But day trading them is not a problem.