Chapter 12. Trends—The Basics
Chapter Objectives
By the end of this chapter, you should
• Know why identifying trends is paramount to profits in securities
• Be able to recognize an uptrend, downtrend, and a trading range
• Understand the concept of support and resistance
• Be familiar with the major methods of determining trends
• Be familiar with the major signals that a trend is reversing
Chapter Summary
Trend—Key to Profits
Following these three steps is key to profiting in the securities market:
1. Determine, with minimum risk of error, when a trend has begun, at its earliest time and price.
2. Select and enter an appropriate position.
3. Close the position when the trend has ended.
Trends define a direction in prices. A sideways trend is ...
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