Technical Analysis Training Course - Will The Trend Continue Or Will It Stop?

So you are starting out in trading and you have developed your stock trading strategy

. 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.

Trend trading is a strategy that is very attractive. Look at a stock chart retrospectively and the trending patterns jump out at you . You salivate about catching a beginning trend and then riding it out to its conclusion months later . The money beckons and sucess is before you !

Unforunately, in reality, trading isn't that easy. You enter a trend - you get in near the beginning or a bit late, but you do get aboard. As your predictions begin coming true and you are in this trade, you get a small profit . Then you have a strong day 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 to your position you add. But alas the following day the market opens up , spends time going nowhere and then plunges south . Since you've added to the position you were in you are fast back to breaking even and in fact by the time you have orders in place you have taken a loss . What happened ? How could you tell ahead of time that the trend was not going to continue and that instead you should take your profit when the market opened strongly up and paused ?

Here are several tips for trading that will tell when a trend will stop and when it will continue . If you use them with 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 logical areas of resistance and support 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 within your trading are unsure of how to coordinate your time frames , then take a quality technical analysis training course for instruction . You'll find Drummond Geometry to be a top option but many different valid schools or thought are out there.

The second element is that you need is a tool with which to make judgments about the strength and robustness of a trend . Resistance or support will be broken through by a strong trend and a trend that is weak will stop or even go into congestion when it hits support or resistance or it could start going 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 you have a high possibility of getting disappointed.

To measure this appropriately you should use momentum tools and apply the tools to a timeframe smaller than that of the trend you are currently trading ... in other words if the daily chart is what you're trading , 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 the second part of this technical analysis training series.

by: Peter Markham

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