trends

It is often said that you can't predict what will happen in the market, the best you can do is ride it and get out when needed. As a newbie you may have heard experienced traders something about ''riding the trend''. Identifying and interpreting trends is one of the basic concepts in technical analysis, so its no wonder that its often used by traders when they establish general rules when trading. Even though a trend can be easily illustrated through a line graph, it has different parts that have different implications in an going trade. However what is really important in looking at a trend?

Technical analysis may intimidating. Most often newbies get turned off by this method because it takes a lot of work and patience. Imagine having to go over multicoloured charts for days on end, trying to determine where you should make your entry and exit in future trades. However, if your the type of person who prefers to have a visual interpretation of figures then technical analysis works for you. Interpreting charts may take time, but they plot price movements that are important for trading.

Analysing Trends