How to identify trend in stock market
To consistently make money in the stock market, you only want trade stock trends!
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But what are the characteristics that make up a trend? I thought you would never ask. Well Stage 2 is an uptrend that is characterized by a series of higher highs HH and higher lows HL. Stage 4 is a downtrend that is characterized by a series of lower highs LH and lower lows LL.
This creates a series of peaks and troughs on the chart that you can trade quite successfully. The rest of the time they move sideways in trading ranges.
This is what a trading range looks like:. Yeah, trading ranges can get that sloppy! There is absolutely no reason to trade stocks that are chopping around like that when you can trade stocks that are in the trending phases.
Trying to trade stocks in trading ranges stage 1 and stage 3 is a great way to chew up your trading capital. So I go and look at the chart and the stock is in a steep downtrend!
So of course I look at the chart and the stock is in a parabolic uptrend!
If you look at any stock on a chart that is in a strong uptrend, london stock brokers directory will find that the pullbacks are short lived.
This gives you a excellent opportunity to buy the stock before forex complete guide pdf resumes the uptrend. Same thing with stocks in down trends.
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Market trend - Wikipedia
It also tells you exactly what day to buy and what day to sell to make a profit. Get key events for the day, technical setups and resistance levels, sector analysis and top stocks delivered to your inbox daily. Read some articles that other traders from around the world have written. Then submit your own trading ideas! Looking for a software program to keep track of all your stock trades?
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