O'Reilly logo

A Technical Approach To Trend Analysis: Practical Trade Timing for Enhanced Profits by Michael C. Thomsett

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

A Set of Assumptions about Short-Term Trends

When you look only at price and attempt to anticipate which direction it will take next, you have to operate on a set of assumptions. The greatest of these is that price acts and reacts within the current trend. If you do not recognize a trend, then the price is truly random. Some stocks are both volatile and unclear about direction, which makes any kind of trade timing both difficult and risky. However, this is often a short-term problem, whereas longer-term trend analysis is likely to identify clear trends characterized by short-term chaotic and random movement with overall identifiable direction.

The second assumption is that price movement is a reflection of supply and demand in the market. Although ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required