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.

MARKET SENTIMENT data

Market sentiment data is a reading of the attitudes of a sampling of leading market advisors. It's not a perfect indicator, but it is helpful.

Since the market usually turns when everyone thinks it couldn't get any better, this indicator is best used as an "overbought" or "oversold" indicator. Or a "contrarian" indicator.

When market sentiment reaches an extreme high, the market is considered overbought, and a downturn is likely.

When market sentiment reaches an extreme low, the market is considered oversold, and an upturn is likely.