Moving averages rely on past data, they are considered to be lagging or trend following indicators. Regardless, they still have great power to cut through the noise and help determine where a market may be heading. Different types of moving averages There are various different types of moving averages that can be used by traders. Despite the various types, the...
You can make money from an uptrend or a downtrend in trading. Downtrends tend to move faster than uptrends, which is why you will find some traders who opt to only short sell assets in order to capitalize on the quick price action. Many kinds of research show that financial instruments can trend more than 30% of the time. The rest of the time, the active moves...
Three phases of the trend. The main trend has three phases. Usually, three phases can be distinguished within the development of the main trend. The first phase, or the accumulation phase, emerges when the most far-sighted and informed investors begin to buy, since all the unfavorable economic information has already been taken into consideration by the...