How to find US market stock trading trend ?It is much more easier to make profitable trades when you know prevailing market stock trading trend. As a trend trader you will use stock trend analysis to find what type of swing trading strategy is better in current market environment. "Trend is your friend" - it is mantra of every online stock trader trading trend. Also note: Be a trend trader means that all trades in recognized trend are taken in more aggressive manner then counter trend trades First of all you need to understand basics of stock trend analysis. How is defined
uptrend
,
downtrend
and
trading range.
Prefer long swing trading strategyStock market index is above 200 SMA and above key 20 and 50 EMA. In this phase prefer long trades with full size of position. Short should be traded carefully and preferably in half share position only.
Prefer short strategyStock market index is above 200SMA but below 50EMA. 20 MA crossed below 50 MA is also additional negative signal. Prefer short strategies in weak stocks with full size.
Neutral strategy50 EMA and 200 SMA are very close and there is not too much space between them. Expect chop - trading range. Stock market index is somewhere in this area.Trade only strong stocks on long side and weak stocks on short side. Full size possible.
Aggressive short swing trading strategies prefferedStock market index is below 200SMA and 50 EMA. Also 20EMA is below 50 EMA. Look for good setups for short swing trades with full size of share position. Trade long trades only for strongest stocks and half size only
Do you have your own definition or rules for stock trading trend ? I will be pleased if you
send me them
Return from market stock trading trend to stock chart analysis
|
