Everyone knows that price charts go up and down. The trader or investor must accept this as part of the deal. Watching our daily trend signals illustrates this. You will see a market going along with low signal numbers, then have a bullish high number then back to a low number. Trying to trade that can be a losing game without disciplined planning and system testing.
Trading quiet markets is frustrating. We can do all sorts of analysis on value and supply and demand and so forth, but our target market seems to be comatose. This type of market offers some of the best opportunities. We can be convinced that it is going up, but it might take months or years to do so. We can simply buy in and wait, which ties up our funds, or we can wait for a breakout and then get in, which risks it being a fake out and we end up buying at a top.
A breakout of a slow market can be caused by either a recognition of value by the market participants, or just a temporary short squeeze caused by speculators. A quick move up is often just a temporary short squeeze composed of short sellers anxious to buy back their short positions. In either case, whether the rise is caused by bullish fundamentals, or actions of speculators, there is usually some type of pull back. If and when the pullback turns around back up, it then presents a better buying opportunity for cautious traders and investors.
Most brokers have alerts that you can set to let you know when a breakout occurs. You can receive price alerts by text on your phone. Also you can have preset orders that will trigger if target prices are breached.
Traders and investors can use the 12 Points trend signals to help them keep abreast of upcoming opportunities. It only takes a few seconds a day to see current conditions and long term trends in the markets. You can quickly see trends and volatility at a glance on multiple markets.
Looking for those markets that are in long term doldrums is a way to find the best opportunities. Conversely, a market that has a long bullish run can be ripe for a correction. For helping to identify trends, we present 4 months of signals on the monthly charts, 4 weeks of signals on the weekly charts, and 4 days on the daily charts, plus the hourly signals at the market close.