A Technical Approach To Trend Analysis: Practical Trade Timing for Enhanced Profits
by Michael C. Thomsett
Conclusion
The entire study of trends relies on specific signals and confirmation. However, these are usually found in some degree and with consistency. It is rare to find a trend lacking in some form of signal. The occurrence of false signals and failed confirmation usually contains its own set of attributes:
• Reversal occurs after a weak or short-term trend. When a trend is minimal—meaning it has a very slight degree of change—and when it is short term, lasting a matter of days rather than weeks or months, a reversal is also minimal. A true trend should contain specific and easily identified price movement. This is in one of three directions: upward, downward, or sideways. The longer the trend, the more important an initial reversal signal. ...
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