A Technical Approach To Trend Analysis: Practical Trade Timing for Enhanced Profits
by Michael C. Thomsett
Strengths and Weaknesses of Trends
The recognition of a shape associated with the trend—breadth, slope, and duration—is also essential to recognize the weakness of any trend. A trend, when viewed as a risk model, offers correlation between outcomes that may cover a wide area of possibilities. This makes price trends more difficult than a fixed field of sample population. Every time a price changes, the moving average has to be updated to reflect the change. So unlike a product sample in which consumers are offered choices between fixed products and their differences, prices are by no means fixed. If the taste of a food product changed every time it was tasted, it would be impossible to apply the rules of fixed sampling to determine how consumers ...
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