by Greg Harmon
You have heard the adage that size matters. And that plays a role in trading, but sometimes your perspective can be more important. Take for example the daily chart for Yum Brands, $YUM, below. A jumbled mess moving in a seemingly random manner. Just when you thought that it was moving to the top of a range in April it reversed and retraced. What
do you do with a chart like this? Stay away! That is unless you can be flexible enough to step back from the messy day to day action and look at the chart from a different perspective. With a longer term, weekly view you can see some rationality to this madness. What was a random mess is now a consolidation zone tightening on the top level resistance. In fact it shows that this happens often in this stock with 4 of them since the low in 2009. From this perspective it becomes a stock to put on the watchlist for the next break out over 73 which would give a target of 85. Much more attractive. Give it a try with stocks you think are just not worth looking at.
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