Friday, January 13, 2012

FOLLOW THE TREND THE TREND IS YOUR FRIEND


On a bar-chart, the high and low for the time period is indicated by the top and bottom of the vertical line.
When there is a series of higher highs and lower lows, a trend can be spotted on the chart. A trend-line can be drawn above and below the trend and gives some support and resistance indications.
Different time periods should be used to detect major trends because some smaller trends on a daily chart may only be part of a major trend on a weekly or monthly chart.


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