Stock trend analysis and trading strategy

Stock trend analysis and trading strategy

Raising money and getting a plus is the goal of biddingpolicy. The search for the way of its implementation leads to acquaintance with various techniques of stock bidding. This leads to mastering the art of stock bidding according to trends, when a trading agent is able to catch the entry or exit points usingstock trend analysis, measures their size and risk, acts consciously


Trend trading strategy: notion


The idea of “trend” is used not only in finance. It is mentioned in fashion, in IT, sports, politics. It means a direction of development, intent, addiction.


Regarding bidding on the stock exchange, a trend is an understanding of the tendency in the price of an asset that is currently traded. Where it will go in the near future? You can answer if you are able to correctly analyze a chart with a unidirectional price movement, i.e. visually identify areas of its growth or fall.


What will you get while stock trend analysis?


Using the ability to reveal trends, you will:


  • see the future price change;
  • effectively use bidding signals;
  • create your own profitable bidding strategy.


Are there pitfalls in bidding by trends? Yes, a trader must not only correctly determine the trend, but also participate in it, considering all risks, and not to forget about false breakdowns. There is one more nuance: to see how strong the trend is and how long it lasts.



Trend bidding strategy in use


To use the current market prices for deposit growth, special knowledge, risk management rules, and strict self-disciplineare required. At first glance, it seems that bidding by trends is something difficult. One just need practice. You should start with the basics, get trained in bidding, together with theory, learning in practice to take profits using trends.


How to start bidding on trends?


Start from the insight of their types, which from the point of view of the criterion of orientation are the following:


  • Bearish (downward) trends are a sequence of down trends or peaks, i.e. the considered one is below the previous one.
  • Bullish (ascending) trends are a sequence of increasing trends or peaks, when the considered one is higher than the previous one.
  • Flat (side), there is no measurable change on the chart, i.e. The peaks are approximately at the same level.


If we consider the time component, trends in the market can be classified as follows:


  • Short-term (1 week to 1 month) is largely dependent on random factors, almost not amenable to technical analysis, characterized by small fluctuations.
  • Medium-term (from 1 to 6 months) or intermediate trends that are in the nature of fix, are contrary to the main trend.
  • Long-term or major (from 1 year to 2 years) trends are formed and traded by significant players; begin and end systematically.


To learnto see price changes, you should take into account the change in the volume of trades, the phases, to determine the trend line. This combination creates the basis of trading, improving the skills of bidding with the trend and turns it into art.

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