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Technical Analysis Training Course Is the Trend Going to Continue or Stop?

By: Jimmy Dawkins

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So you are starting out in trading and you have a strategy for stock trading that is your own. You have gone through technical analysis training course and after careful consideration you have settled on trend trading as your preferred trading style .

Trend trading is an attractive strategy for sure . Take a look at charts and you'll see those trending patterns jump right out . You salivate about catching a beginning trend and riding on through the conclusion of the trend many months in the future. Success is ahead of you and that money calls you!

Unforunately, in reality, trading isn't that easy. You manage an entry - maybe you are late or maybe you have managed to enter near the beginning of a trend , but you do make it on board . As your predictions begin coming true and you are in this trade, you get a small profit . But then there is a very strong day and after that then the market stops dead in its tracks as the stock hits resistance . You tell yourself there will be more and you couldn't move everything in a day anyway and so you add to your position . But alas the following day the market opens up , goes absolutely nowhere, and then it starts heading down fast. Because you have added to your position you are fast back to breaking even and once you have the orders in place, you have already lost money. What is the deal? How could you tell before it happened that the trend wouldn't continue and that instead you should take your profit when the market opened strongly up and paused ?

Here are several tips for trading that will let you know when a trend is going to go on and when it's going to stop . If you apply these to your technical analysis training you'll be on top of your game.

Most importantly: to set your targets use higher time period charges ; look for logical places of support and resistance to know when the market is going to stop or start.

If you do not know how to predict where future areas of support and resistance exist , or within your trading are unsure of how to coordinate your time frames , then take a quality technical analysis training course for instruction . You'll find Drummond Geometry to be a top option but there are many schools of thought which are valid as well .

Another element that is needed is a tool with which to make judgments about the strength and robustness of a trend . Trends that are strong will break through support or resistance and when a point or resistance or support is hit by a weak trend it will go into congestion or stop or it could reverse course . If you have the right tool in your analysis tool kit you can make a prediction of which action is more likely ; without the right tool, you'll be waiting tos ee what happens, and there's a good chance you'll be disappointed .

To measure this appropriately you should use momentum tools and then apply them to a smaller timeframe then the one you are in ... to make it plain if you're trading a daily chart, try to pick the low or the high with the trades , then you would be looking at an hourly or half-hour chart to give you support in your trading decisions intraday .

We'll talk about this more in the second part of this technical analysis training series.

Author:
Peter Markham is a Forex and financial futures trader with 30 years practical experience in the markets. He received his education in Sydney and Los Angeles and has been a trading consultant worldwide. He has written widely on Technical Analysis Training Course. Among many possible technical analysis courses Peter recommends www.drummondgeometry.com for an original and productive trading approach.

Article Source: http://depositarticles.com/

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