Try our live system |
Our Trend Following Charts and Analysis |
 Click here for Sample End of Day Chart |
 Click here for Sample Intraday Chart |
Our #TheSTRAT Charts and Analysis |
 Click here for Sample Long Term TheSTRAT Chart |
 Click here for Short Term TheSTRAT Chart |
|
|
|
... ST
Short Term Trading | ||||
Markets are driven by short term traders. Short term trading can be very lucrative, but it can also be risky. A short term trade can last for as little as a few minutes on an intraday chart to as long as several days on EOD charts. To succeed in this strategy as a trader, you must understand the risks and rewards of each trade. You must not only know how to spot good short-term opportunities but also how to protect yourself. Let's look at what creates short term opportunities.
Since the stock prices swing like a pendulum, the market has a habit of swinging between two extremes of euphoria and gloom. Therefore, the market is presented by believers and non-believers. Those who believe in the price action qualifies to be called trend followers and those who don't believe in are called contrarian traders. Now, the first thing we have to understand is the force behind the current price action and how much impact it may make to the newly formed direction or carry on making it in the current direction. Headlines come in many forms :
We at the lucid trend, as a Trend following system, rely on the chart as a primary vehicle to make a decision while contrarian focus on the valuation to make their call. l. If it is this simple to understand, why are we still losing money in the market? You are not alone in the game of speculation. You have at least one partner in this business who is known as Mr. Market whom you have to consider there all the time either with you or against you!. Sometimes, you may have a second partner called Mr. Broker it's all depends on your trading style and utilization of margin facilities provided by your broker. So, there is you, Mr. Market and Mr. Broker. Mr. Market will constantly adjust its prices based on supply and demand. Mr. Broker ( who can be bullied by Mr. Market and make margin calls when they get little uncertain or regulators can make them uncomfortable, when that occurs, they can force you out of your positions) which falls under accidental buyers or accidental sellers category. You have control on your calls and discipline. However, one thing you don't have is control on the other side of the force! Our short term analysis will indicate the direction, heavy trading and price momentum on the chart. That will help you understand what heavy volume trading is able to achieve and how the technical conditions are influencing stock prices.
Heavy volume primarily indicates intensity of trading activities. However, price action can provide the clues on if the stock is being accumulated or distributed by larger forces. Only time will prove our thesis. Therefore we should learn to read the impact and influence of heavy trading as well as technical conditions on price action. |
|
represents Accidental bull breakout also referred to as New Sun.
represents Bull run
represents Bull Breakout also referred to as an Emerging Sun
