Trade with the view of stadium

How about that, just look at the pricing schedule, you are immediately able to find a good deal? This is not so difficult as you think. First, look for recurring patterns and trends, and then see where the price traded on the "tree model". This should immediately show you whether there is an opportunity to make money.

The analysis stage to determine your location on the overall picture of the market. Stan Vaynshtayn presented this really powerful technique in his classic work "The secrets of making a profit in bull and bear markets." In this paper, he described how the market may be violated in certain stages of development.

Each stage has its own characteristics and are more suited for it, some specific strategies than others. For example, during an ascending trend is better to stand in long positions while descending trends are more suitable short. This sounds quite natural, but many traders do exactly the opposite.

This re-formed in the mechanics of the concept called cycles models. It focuses on the cyclical aspects of the analysis phase and how traders can use it to earn profits on a wide variety of market opportunities. Cycles models arise in the markets through the cycle behavior of the crowd. They are developing evolutionary - ie, one stage flows naturally to the next. They signal the selection of a strategy that will work best in the current stage, and warn of what to expect next.

What is this repetitive cycle? They correspond to the usual concepts of technical analysis, which we knew all these years - reason, breaks up, bottom-up trends, the new peaks, tops, breaks down, and top-down trends. Each stage also defines the axis of the trend range, which carries a price in the lateral movement, up or down in a fairly predictable manner.

One of the major factors that complicate the analysis of the market stage is that the market exists in more than a temporary format. In other words, the market will be in one stage on a weekly schedule, in another stage in the afternoon schedule, and the third on intra-day schedule. Traders must remove the contradiction between the trends in different time formats, to obtain a forecast of price action and to take advantage of a market phase.

Errors in determining market movements washed away many traders from the market. They set the stage for a certain schedule, and cast into the market. But they sometimes forget the larger temporary format, which is moving against their positions. You can overcome these problems by defining the periods of retention of positions that correspond to stages of commerce. In a broad sense, it is the same process that divides the market players in those trades through skalpirovaniya, trade on the movement, positional trade and investment.

Maximum opportunity arises at the time of transition from one stage to another. Consider three examples. Ability to trade on the break occurs when the ground is moving in an upward trend. Trading on the back developed in a time when the price recovers to the border of the last stage. Leap to the new maximum range of pulse generates transactions.

Competently choose their trading strategy. There are times to buy on the breakthrough times to stand up in short positions. There are times when you need to reduce their positions and the time to take what the markets give you. Certainly it is time to pursue the momentum and the time to sell on price fluctuations.

Errors in recognizing stadium also hurt. Look at the many examples where investors want to buy from depths after the collapse of the U.S. stock market from the top 2000. suffered losses. In those days, Bear market, investors have forgotten that the reason for the formation takes time, as needed to restore the years, not days.

Investors in undervalued assets are included in the market, which formed the base. Traders who trade on momentum, are strong in the ascending and descending trends. But it is unclear where some are buying at the top during culmination. So, whether you are trading on short-term movements, or invest for the future, take the time to determine the current stage of market specific marketing tool and to the broader market. This will ultimately help determine the best way to play your game.

Remember that finding out the market is an effective strategy for some stages. You will not make money when the market conditions do not correspond to your period of retention of the position or trade skills. Instead, stand aside and let the market reach the desired stage, when the current cycle has no meaning for you. This requires discipline, but it will allow you to stay in the game a long time.

Traders who trade on the movement can better utilize the market situation and deal effectively with a variety of stages. A wide range of trading strategies and approaches, allowing them to earn a variety of market conditions. They can trade on the breakthrough, when markets are in motion, and also play on the movement, when the markets swing to the range. The diverse skills enable them to trade in the short side when the markets decline, or work from the border during broadbanding.

Therefore, a successful trade, try to connect the correct definition of the stages of market movement and good use of appropriate trade strategies and approaches.