Spot Trend and Go With It
Determine the trend and follow it. Market trends come in many sizes –
long-term, intermediate-term and short-term. First, determine which one
you're going to trade and use the appropriate chart. Make sure you trade
in the direction of that trend. Buy dips if the trend is up. Sell
rallies if the trend is down. If you're trading the intermediate trend,
use daily and weekly charts. If you're day trading, use daily and
intra-day charts. But in each case, let the longer range chart determine
the trend, and then use the shorter term chart for timing.
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