A level of important trend formation when once formed tend to persist until evidently proven reversed. A bullish trend allows price to move higher highs and higher lows over a long period of time.
A level of important trend formation when once formed tend to persist until evidently proved reversed. A bearish trend allows price to move lower highs and lower lows over a long period of time.
[Holding a Bullish Trend Stock]
- Detect the Bullish Trending stock and let the price do their work for you.
- As long as price did not evidently violate the support to form a Bearish Downtrend = that stock is poised for a good rebound.
- Plan the trading plan by seeking higher highs when its comes to a Bullish Stock
- Maintain the last support of the trend as a point to execute your stop loss on this stock. This is because once the trend has shifted = you will be holding onto a Bearish Stock.
[Holding a Bearish Trend Stock]
- Detect a Bearish Trending Stock and you can only trade for a rebound.
- Bearish Trending stock tend to persist until evidently proven price has breach above its resistant and lead to a shift of trend reversal into Bullish Trend.
- Hence the resistant of the trend is always crucial. Even being able to break out it must be able to maintain above this resistant turned support level.
- Planning for trading plan on a Bearish Trend stock must always set a tighter stop loss level as by not being careful may end up seeing the price breaking lower lows.
- Holding onto a Bearish Trend stock and HOPE it will shift its trend soon will always be an illusion until price has proven to us.
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