Part 2 Technical Analaysis Training Course - Will The Trend Continue Or Stop?

In the first part of the technical analysis training course series on Will the trend

stop or continue we talked about how two tools are needed to measure a trend's strength, which will help you figure out if a trend is going to stop or continue . The first on was setting targets the proper way according to support and resistance's structure .

The second tool to use is momentum tools. These tools should be used to make appropriate judgements and apply them to a timeframe that is smaller than the one you are trading ... essentially if a daily chart is the way you're trading , trying to pick of the high or low of the day with your trades , then for support for the intraday trading decisions you'd be looking at half hour or hourly charts .

Momentum tools - what are they? A short-term moving average is one of the best ; use three moving averages in a channel system and you'll then have a matrix that you can use to measure a trend's strength. There are many channel systems but the Drummond Geometry System is one of the most effective (you should have learned this in your technical analysis training course) which uses as its center line a short-term moving average of the average of the close, high, and low of the last bars that have been completed , projected forward onto the future bar . To this two channel bands are added based upon averages that are similarly managed on the previous three pivot points . Great market strength judgments can be made by monitoring where closes occur sequentially in relation to this system .

Market flow should be established by taking measurements using different price strength aspects, such as how close the close of the bar is to the low or high, the distance between close and open , the measurement of the range of the bar , and how much progress the bar is making through your support and resistance matrix .

Another tip : Since every time frame has a support and resistance system , watch how difficult or how easily the lowest monitored timeframe breaks support or resistance in a trend . The more easily this occurs , the more the underlying trend is probably going to be robust. Within an uptrend , support close to the low of the bar is going to hold , and near by resistance will more easily and more often break . Lower time-period support holding, and resistance breaking - this is a good sign that the trend is strong .

These tips should help your stock trading strategy become a consistent winner as you learn how to distinguish between trends that are running out of steam and the trends that will go on for a long time. A good course that sharpens your technical analysis training course can save you both money and time by giving you the right tools to make the distinctions that are so important.

by: Peter Markham

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