trend study and graphing

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Trend Study & GraphingDiscover important stages of a stock

trend


Basically, accumulation takes place with institutional trade

when volume boosts.

This is the initial stage of a stock trend when brokers start

acquiring a security or add to present status.

VOLUME

Accretion

Accumulation and distribution of shares, of stock, ultimately drives price cycles upward and downward. Price cycles continually fluctuate between accumulation and distribution periods, creating opportune times for investors to continually purchase and sell shares of stock.



There is no odd price stroke.

The highs get higher on when the market is up and the lows get lower when

the market is down.

Follow this trend to make money

regardless the status of market.

Main Stage (called continuation)

By definition, accumulation of shares occurs when buyers purchase or “accumulate” more shares at a stock’s “ASK” price, in comparison to selling or “distributing” more shares at a stock’s “BID” price. Typically, accumulation of shares will occur during a “range-bound” period, where price trades within a given high and low range. The picture above depicts a “range-bound” period, where accumulation of shares is occurring. Accumulation of these shares increases demand and shortens supply, thus increasing the stock’s price over a given time period.



Price resides moderately

constant at the trading range.

As the volume of purchasing and selling stays unaffected

for hours, days, weeks and even months because there is no opportunity to get genuine

profit.

A rectangular isused to indicate

consolidation models on the

charts.

$ $

Consolidation (called congestion)


A temporary back off from the key

trend to the maintain level of

prices!

Retracement, it is a right time

to make a purchase.

Retracement can be killing for happy-go-lucky traders.

$

Retracement (called correction or pullback: retrait)

Periods of re-accumulation most often follow price trends, formed by initial accumulation periods. Re-accumulation is also considered a trend continuation period. Typically, re-accumulation of shares will occur during a second or third “range-bound” period, where price trades within a given high and low range. The picture above depicts a second “range-bound” period, following an uptrend, initiated by an accumulation of shares.



At this stage, traders likely to sell in huge quantity as they believe the security can’t go up to any further

extent.

Distribution happens mainly with institutional selling

when volume drops off.

Allotment


The trend amends. For that reason, it is perhaps right time to

sell.

U-Turn

By definition, distribution of shares occurs when sellers sell or “distribute” more shares at a stock’s “BID” price, in comparison to buying or “accumulating” more shares at a stock’s “ASK” price. Typically, distribution of shares will occur during a “range-bound” period, where price trades within a given high and low range. The picture above depicts a “range-bound” period, where distribution of shares is occurring. Distribution of these shares increases supply and decreases demand, thus decreasing the stock’s price over a given time period.


Periods of re-distribution most often follow price trends, formed by initial distribution periods. Re- distribution is also considered a trend continuation period. Typically, re- distribution of shares will occur during a second or third “range-bound” period, where price trades within a given high and low range. The picture above depicts a second “range-bound” period, following a downtrend, initiated by an distribution of shares.



When trends are altering quite rapidly, make out how to progress in such situations. To expose, you can use Momentum & Breakout.

Impetus & Escaping


Most probably, trends are likely to keep on. Generally, momentum trading is done by concentrating to profits made or estimated by the stock issuer.

Impetus Trading


(evasion)Break down turns out when a safety price leads through

and keeps on above-or below-the struggle or support line.

It forms a novel trend with new support and

resistance level.

Getaway (evasion)

A one-time breakout perhapsno more than an irregularitywhich is called false breakout Keep your mind on to 2 or morebreakouts as they hint thebeginning of a new trend An uphill breakout will sourceprices to go up

A downhill breakout will leadprices to go down A false breakout can wreak

havocfor a day or two of trading Do not acquire breakouts ina bear market


Contact Logix Trading and discover howyou can get success in your day trading career!

Charting and trend study is notnecessary as such to start trading.

trend study and graphing

Economy & Finance