Technical Analysis Training – Learn Whether The Trend Will Stop Or Continue
So you’ve begun trading and you have a strategy for stock trading that is your own. You have completed your initial technical analysis training course and after some consideration you’ve deciding on trend trading for the style you prefer .
You’ll definitely find trend trading a strategy that is attractive . The trending patterns just pop out when you retrospectively look at stock charts. You get excited about catching a trend in the beginning and then riding it out to its conclusion months later . Wealth beckons, success is on your doorstep !
Unforunately, in reality, trading isn’t that easy. You get in on a trend – maybe you are late or maybe you have managed to enter near the beginning of a trend , but you do make it on board . As your predictions begin coming true and you are in this trade, you get a small profit . Then a strong day comes along and after that then the market stops dead in its tracks as the stock hits resistance . You tell yourself that you can’t make the whole move in a day and there is more ahead and then you add to the position you are in . But alas the following day the market opens up , goes nowhere for a while and then quickly heads south . Because you decided to add to the position you head back to break even fast and then you take a loss by the time you get your orders in place . What happened ? How could you tell ahead of time that the trend was not going to continue and that you should have taken the profit when the market started strong and then paused ?
Here are some trading tips that will let you know when a trend is going to go on and when it’s going to stop . If you apply these to your technical analysis training you will be well ahead of the game .
First and most importantly : go with higher time period charge when setting targets; look for areas where resistance and support are logical to know when the market is going to stop or start.
If you are not sure how you can predict where support and resistance will exist in the future , or within your trading are unsure of how to coordinate your time frames , then take a quality technical analysis training for some help . Drummond Geometry is one of the best but many different valid schools or thought are out there.
Another element that is needed is a tool which will help you to make strenght and robustness trend judgments . Trends that are strong will break through support or resistance and a weak trend will stop and either go into sideways congestion at a point of resistance or support or it will reverse and move in the opposite direction . If in the analysis tool kit you have the perfect tool you can make a prediction of which action is more likely ; you’ll have to wait and see without the right tools , and there’s a good chance you’ll be disappointed .
To measure this appropriately you should use momentum tools and apply them to a timeframe that is smaller than the one you are trading … in other words if you are trading a daily chart , try to pick the low or the high with the trades , then to support the decisions you make intraday, you look at the hourly or half hour charts.
We will continue this discussion in Part II of this technical analysis training series.
Tags: learn technical analysis, technical analysis, technical analysis course, technical analysis training
