trending. newbie here please help!!!
i am starting to begin a life in day trading and was trying to figure out when you know a upwardtrend or downward trend is going to end? i mean how can you predict that? what are some of the indicators to observe. also can someone tell me how you can tell when a stock is starting an upward trend or downward trend as well.. thanks guys.. i know how much of a pain it is to help some poor old newbie like me but honestly in the world of daytrading everyone could use a little good karma. helping another in need is a great boost to your karma. lol thanks for any help you guys can provide me with!!!
The best way of knowing when a uptrend/downtrend has ended is to wait for confirmation (break of that trend). For example if you draw a trend line and it breaks through it then the trend has possibly ended, at least short term. If you're asking how to get in before it breaks out/down through a trend then you can use other technical indicators (volume, RSI, etc) to see if those are starting to show signs of slowing/increasing momentum.
ah i see thanks!! but how would you be able to tell if the trend is nearing to its end before it actually happens. i have heard to look at the volume for instance, that volume was a key indicator but honeslty i have no idea what to look for in the volume.
there is no straight answer to the question you are asking. For starters you never now for sure. You can only try to determine the posibility's the technical chart gives you and combine those with fundamentals. And even there we see no straigth answer. You need some experience and a certain way of "thinking" to get to where you want to get. You need to combine charts, fundamentals and insight.
there is no easy way to learn this...there are no shortcuts. The best thing is practice, study and more practice.
its a site made by a proven mastertrader..he does this for free and you well find everything there you ever wanted to know about patterns and TA in general.
cheers ,:mrgreen: