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Old 03-04-2007, 05:16 PM
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grizzums grizzums is offline
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Lets talk about trends...how to spot them, where to buy and sell in them, and how to decipher the strength of them...

Im still learning, so please feel free to agree/ disagree and add your two cents...Im just giving opinions, and by no means is what I say the last word...

It will help me to get comments from all of you as well...

The chart I am posting up is of the QQQQ (Nasdaq 100) ....but first, in t/a how can you tell if a trend has strength.....a good indicator for that is the ADX

http://www.investopedia.com/terms/a/adx.asp

I have been told by some that a nice strong trend is when the ADX is actually above 30...a tad contrary to what you'll read in investopedia but not much...

Also notice the 20ema during the period of a strong trend...


Lets look at this annotated chart I put together...(I owe a lot of what I am learning to Flavin)...lets notice when this most recent uptrend is at a period of real strength and lets see how we can figure out the best places to be adding to long positions (because we are looking at an uptrend)....then lets look at the times when we begin to see the trend weakening (a time when we should be changing over to cash and preparing for the trends reversal; possibly getting ready to get on the short side)...

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Last edited by grizzums : 03-04-2007 at 08:58 PM.
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