TRAP: It's the Trend, Stupid!
It is really all about trend. Just as the most important thing in starting a business is location, location, location, the most critical part in maintaining a fat trading account is trend, trend, trend. We can't talk about the concepts of Macro and Micro without first speaking about trend.
No doubt, everybody knows what a good trend looks like. However, it's worth noting that not all trends were created equal. More importantly, it depends on the eye of the beholder. But, first, how should a trend be interpreted? The common fallacy surrounding a trend is that it is a formation of either higher highs or lower lows. This, however, does not address the issues of momentum and time. So, again, the whole notion of trend harks back to the principles of PMT. I, for one, do not see a trend as a mere display of higher highs or lower lows. Rather, I see it as a display of either increasing or decreasing strength; or, better yet, gaining or waning weakness. It's a constant tug-of-war between the bulls and the bears. This is what determines the final product that we call trend.
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Important note: Allow me to be blunt. I don't like to bitch anymore than I have to but there's a good reason why this thread was written in a chronological order. If you're new to this thread, start from page 1 and don't skimp on details!
It is really all about trend. Just as the most important thing in starting a business is location, location, location, the most critical part in maintaining a fat trading account is trend, trend, trend. We can't talk about the concepts of Macro and Micro without first speaking about trend.
No doubt, everybody knows what a good trend looks like. However, it's worth noting that not all trends were created equal. More importantly, it depends on the eye of the beholder. But, first, how should a trend be interpreted? The common fallacy surrounding a trend is that it is a formation of either higher highs or lower lows. This, however, does not address the issues of momentum and time. So, again, the whole notion of trend harks back to the principles of PMT. I, for one, do not see a trend as a mere display of higher highs or lower lows. Rather, I see it as a display of either increasing or decreasing strength; or, better yet, gaining or waning weakness. It's a constant tug-of-war between the bulls and the bears. This is what determines the final product that we call trend.
[edit]
Important note: Allow me to be blunt. I don't like to bitch anymore than I have to but there's a good reason why this thread was written in a chronological order. If you're new to this thread, start from page 1 and don't skimp on details!
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