Where do trends start from
There are many ways to find edges in the market. All of them require some structural understanding of stock moves. It requires an understanding of how stock moves and why they move the way they move.
As a beginner trader you will have either the right understanding of market structure or wrong understanding or muddled understanding.
If you start with right understanding your learning curve will be significantly shorter. You will find your edges easily.
One of the structural phenomenon in market is that stocks exhibit long duration or large magnitude trends for a period of time in their lifetime.
Some stock will have just one large trend in life and then end years going nowhere.
Some will have multiple trends in their lifetime.
Within these trends there can be short term trend or long term trend.
I am interested in trends with magnitude of 80% plus price growth. If a stock shows greater than that magnitude trend then it is exhibiting explosive trend move.
Look at some of these big trends in last 3 to 6 month. These stocks made some of the biggest moves.
If you want to develop a method to find and trade these kinds of moves you should understand the nature of these trend moves.
As a beginner trader you will have either the right understanding of market structure or wrong understanding or muddled understanding.
If you start with right understanding your learning curve will be significantly shorter. You will find your edges easily.
One of the structural phenomenon in market is that stocks exhibit long duration or large magnitude trends for a period of time in their lifetime.
Some stock will have just one large trend in life and then end years going nowhere.
Some will have multiple trends in their lifetime.
Within these trends there can be short term trend or long term trend.
I am interested in trends with magnitude of 80% plus price growth. If a stock shows greater than that magnitude trend then it is exhibiting explosive trend move.
Look at some of these big trends in last 3 to 6 month. These stocks made some of the biggest moves.
If you want to develop a method to find and trade these kinds of moves you should understand the nature of these trend moves.
Where do these trend start from?
These are the most explosive trends in last few months.
Where did they start from.
These are the most explosive trends in last few months.
Where did they start from.
How can you find them early.
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3 comments:
In the membership site, do you go over which strategies are best at potentially identifying these pre move or at the beginning of the trend move? I know it's not 100% but a few of these in a trading lifetime add up!
Pradeep,
I find your blog of higher quality lately both in format and in substance. By the way, is the source of the candle charts you post Worden Telechart? I find them neat!
Congrats for the improvements.
Yes it is Telechart
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