Think about this: A certain price of a commodity or stock will continue moving in its given direction unless something causes it to change. What can cause it to change? Reports, market makers, the news. Example: The euro is moving in an upward diagnogal lateral. It will continue to move in this continuous direction unless otherwise noted. Say a report comes along, it will temporarily change the price, however, price will still continue up. So, if you want to bank some money, follow the dominant trend(yearly) and see the trend's dominant direction. Intermediate trends do not apply. Looking at the big picture is looking at the dominant trend. Remember again, price will continue in its dominant direction unless otherwise noted in order to change. Put your order in for its current direction and hold the whole way unless you see a signficant change(deviation) from the current direction. Enjoy! By the way, here's an example. This is much simpler than Jack Hershey's Method and Spyders.. It's as easy as continuation or change. That's it! Don't let those guys over complicate things for you new guys like me.
============== BnB; Good points. Still prefer to study medium /intermediate trends; that way you can liquidate longs, go short 2-27-07 week Trend=friend, especially 1 year trend/friend.
The universe is in a 14 billion year bull expansion.. and I'm going with it until I start to see time run backwards and everything contracting
Thanks , yeah, I believe you just have to keep things simple at the end of the day.. This mind set is what inspires me to continue my life as a full time commodities trader.
There is one way and one way only to make price go up, and that is to buy it. likewise there is only one way to make price go down, and that is to sell it. As to what exactly causes peolpe to buy and sell, well, every reason under the sun exists for that.