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A Technical Approach To Trend Analysis: Practical Trade Timing for Enhanced Profits
book

A Technical Approach To Trend Analysis: Practical Trade Timing for Enhanced Profits

by Michael C. Thomsett
July 2015
Intermediate to advanced content levelIntermediate to advanced
352 pages
9h 40m
English
Pearson
Content preview from A Technical Approach To Trend Analysis: Practical Trade Timing for Enhanced Profits

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 ...

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Publisher Resources

ISBN: 9780134190662Purchase book