Stock Market Trend

Stock market trend means direction or tendency to move. It means the path of least resistance governed by the law of supply and demand. Stock market trends are in three timeframes – short, intermediate and long term trends. The stock market are correspond to line changes in three timeframes.

Line changes relate to effort and result. The greater effort a stock market to make a line changes, the more significant the line change be. Bull stock market or strong upward trend is born from the bottom of a panic sell down. Fear and pessimism pervade. There is gloom and despair and no hope.

Entry the stock market at these times are of the highest quality and the lowest risk. You are buying below value at bargain sale prices. There are some subtle clues and chart patterns which will help you make the trade with confidence. If your timing was wrong, your loss will be small and the bulk of your capital will be intact for the next entry.

There are three stock pattern setups which are useful in pinpointing the beginning of a new trend. When combine with volume analysis you will have a good idea of exactly when to enter and how to measure your risk.

These setups will usually occur long after the financial news turns positive. They are in a sense lead indicators of future market action. The investment crowd will still be confused, afraid and sitting on the sidelines.