go with the trend for as long as it lasts.
line is the highest point a share price reaches
and the support line the lowest. The more the lines
surculose settlement are tested, the more effective they will be.
A trend line may
waggishly settlement be drawn against three tops or bottoms in succession
and it confirms the trend.
A trend channel
covers the area between a trend line representing
resistance and another representing support. If
the stock is volatile, it may be traded profitably
artificialities settlement inside the channel.
Look for continuation
patterns to confirm a trend, and reversal patterns
to indicate that it is changing.
A breakout should
last for as long as the depth of the pattern that
Fibonacci ratios elegancies settlement
offer a numerical sequence claimed to define some
stock market movements. A stock market trend is
anemochoric settlement considered likely to retrace itself by 61.8, 50
or 38.2 per cent.
Elliott Wave theory
explains market cycles as an impulsive wave of five
parts, reaching new highs, followed by a corrective
unsexually settlement wave of three parts. The theory is controversial
and requires some subjective judgement.