Trend trading is a method that attempts to capture gains through the analysis of an asset’s momentum in a particular direction. A trend trader enters into a long position when a stock is trending upward (successively higher highs). Trending on lower prices in a downward can be a trend also.
Contrary to popular beliefs and widespread myths, trend following is not a terribly complex subject. It is all about waiting for a price to make a move up or down, taking a bet that it will continue in the same direction for a while and sitting on that bet until The Wizard tells you that it is time to get out of the trade.
The core idea of trend following is extremely simple and there is no point trying to make it seem complicated. Wait for momentum to build in one direction and get into the trade.
First know the trend of the market you are trading.
You want to now what the Sector Trend is.
You want to now what the Industry Trend is.
Find out when the sector, industry and stock trends started and how long they have been in a trend.
Be sure you enter close to the start of the trend rather than the end of the trend.
Then you check the stocks in that trend to find the strongest stocks.
Strong stocks are the first to start the trend and the last to get out of the trend.
You will find that as we scan the wizard and are trading with the trends we will show better results.
Trends can be long and they can be short.
Trends can happen in any time frame.
If you are trading a longer time frame and are in a trend you can enter on a smaller time frame if you did not get in at the beginning of the trend on the larger time frame.
With the Wizard you can trade all of the time frames offered and realize profits.
With the Wizard it is easy to recognize the trend because we indicate the trend of each market, sector, industry and stock.
The Wizard breaks down each trend for each time frame and shows you with our calendars what the trend was as far back as 10 years on most stocks.
Trading an uptrend has three components that allow you to enter and uptrend. A strong uptrend, a long term and short term pullbacks. There can be signals on the Wizard to enter any of these trends.
