Thursday, April 18, 2013

Some random charts

Below are several randomly selected charts that have produced decent trends to follow, in both directions. All of these trends were developed directly from valid signals per my own system rules - a breach of a previous high or low is not the be all and end all. There are other characteristics and criteria that I look for in a potential trade.

Suffice to say, there has been plenty of profitable trend such as these, in both directions, on the major exchanges. You never know whether a trend like those shown below will develop or not. All you can do is control your risk, place your bet, and see what occurs.

It is important to remember that, once a trend gets under way, you do not limit your profits for fear of losing them. Trend following in its purest form is an 'absolute returns' strategy, in that you tightly control losses incurred, but you do not limit the potential profits that can be made. Trend followers do not use price targets, nor do they refer to oscillators or other technical indicators which may indicate that a market is overbought or oversold. Price and its trends tells you everything you need to know.

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