Technical Analysis Training Is The Trend Going To Continue Or Stop?
So you’ve begun trading and you’ve come up with a stock trading strategy of your own . You have gone through technical analysis training course and and for your preferred style you have gone with trend traing after some time in thought.
You’ll definitely find trend trading a strategy that is attractive . Take a look at charts and you’ll see those trending patterns jump right out . You get excited about catching a trend in the beginning and then riding it out to its conclusion months later . The money beckons and sucess is before you !
Trading isn’t so easy in reality . You enter a trend – you may be a bit late or you get in near the trend’s beginning , but in any case you are aboard . As your predictions begin coming true and you are in this trade, you get a small profit . But then there is a very strong day and then the market stops dead when resistance is hit by the stock. You just let yourself think there is more ahead and you can’t make the entire move in one day anyway and then you add to the position you are in . The market opens the following day, goes nowhere for a while and then quickly heads south . Since you’ve added to the position you were in you are quickly back at break-even and in fact by the time you have orders in place you have taken a loss . What happened ? How could you tell before it happened that the trend wouldn’t continue and that the profit should have been taken when you saw that pause after the strong open?
Here are several tips for trading that will tell when a trend will stop and when it will continue . If you apply these to your technical analysis training you’ll be a step ahead of everyone else .
First and most importantly : go with higher time period charge when setting targets; look for areas where resistance and support are logical to determine where the market will start and stop its move .
If you do not know how to predict where future areas of support and resistance exist , or are uncertain how to coordinate time-frames in your trading , then take a quality technical analysis training for more information. You’ll find Drummond Geometry to be a top option but there are many schools of thought which are valid as well .
A tool is another element that you need that will help you judget robustness and trend strenght. Resistance or support will be broken through by a strong trend and a weak trend will stop and either go into sideways congestion at a point of resistance or support or it could reverse course . If in the analysis tool kit you have the perfect tool you’ll be able to figure out which action is more probable ; without the right tool, you’ll be waiting tos ee what happens, and the possibility of being disappointed is high .
You need to use momentum tools to appropriately measure this and then apply them to a smaller timeframe then the one you are in … in other words if you are trading a daily chart , try to pick the low or the high with the trades , then you look at the half hour or hourly chart to support the decisions you make intraday .
We will continue this discussion in part 2 of the technical analysis training series.