DTT Buzz

We've provided you with previous articles on the basic concept of trend which explained the three types of trend, support and resistance levels, trendlines, reversal days and price gaps. Now it's time to move on to price patterns which play a predictive role for the traders who are participating in Swing Trading, Options Trading and Day trading.

Our previous articles explained that as long as the peaks and valleys were moving up, the trade was in an uptrend, and when they moved in a downward direction, it was a downtrend. However, price patterns play their most important role in sideways trends.

Most changes in trend are not abrupt. Rather, the changes usually require a period of transition or sideways movement. Keep in mind however, this sideways movement isn't always the signal of a trend reversal. It may just be a pause or correction before the trend continues on in the original direction.

This is the point where traders use price patterns to interpret and forecast where the market movement will go next.

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Happy Trading,







Nick Fenton

VP of Operations, DaytradeTeam

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