The trend is one of the most important indicators of technical analysis. According to technical analysis theory, stocks that are in rising trends will continue to rise, and stocks in falling trends will continue to fall. Investtech’s research shows that this theory is correct.
This makes it very important to identify whether a stock is in a rising or falling trend. It is also important to recognise when trends change, in order to get out early in the case of a falling trend and get in early in the case of a rising one.
The trend is a simple indicator to follow. Every day Investtech’s systems identify the qualitatively best trend for each stock. Stocks in rising trends should be bought and stocks in falling trends should be sold.
The bottom line of trend analysis is simple: The trend is your friend.
It may appear that a stock should be sold when it breaks downwards from a rising trend. However, this often simply signals that the stock is taking a small break and will continue upwards soon. The following applies when assessing trend breaks:
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The content provided by Investtech.com is NOT SEC or FSA regulated and is therefore not intended for US or UK consumers.
Investtech guarantees neither the entirety nor accuracy of the analyses. Any consequent exposure related to the advice / signals which emerge in the analyses is completely and entirely at the investors own expense and risk. Investtech is not responsible for any loss, either directly or indirectly, which arises as a result of the use of Investtechs analyses. Details of any arising conflicts of interest will always appear in the investment recommendations. Further information about Investtechs analyses can be found here disclaimer.
The content provided by Investtech.com is NOT SEC or FSA regulated and is therefore not intended for US or UK consumers.