How do you know if a market is trending?
My recent survey done with fellow traders shows that a trend could be spoken of as....
1. A price move in the market over any specific period of time.
2. A series of new highs and higher lows or of new lows and lower highs.
3. Trending indicator showing a long or short signal.
4. Up-move or down-move.
5. Elliott Wave formation.
6. Astrological occurrence.
7. Fundamental news item.
8. My stockbroker’s next hot tip on a stock.
9. My coin flipping strategy.
10. My throw-a-dart-on-the-“stock” board strategy….
While some are humorous, some foolish, and others technical, which, if any, is correct?
Well, based on dictionary definition:
The relatively constant movement of a variable throughout a period of time. The period may be short-term or long-term, depending upon whether the trend itself is short-term or long-term.
For example, a rising market is taken to mean that prices of most stocks are in an upward trend.
So there you have it, the definition of a trending market!
Happy Trading!
No comments:
Post a Comment