There are steps the market moves in , and the steps can be set apart and then studied, one at a time . You’ll also find , these steps progress in a sequence , and that sequence can be defined and analyzed , piece by piece .
If we understand the “type of trading” that the market at any moment displays , we can figure out techniques and tools that do the best job for a specific market activity . Also, You’ll also find, if you know the type of previous trading , that which is happening now, and which is likely to follow , we will have a leg up on most other traders . We will always be able to choose the best tools to use , and we will be prepared for what is about to happen . When it comes to trading, that is a big part of the battle.
Hard earned experience and a quality stock trading course has taught us that the trading definitions must be crystal clear and without the slightest ambiguity , or the analysis done will quickly become without value . We need definitions that apply to all markets , within any time-frame. Our definitions must be robust and simple .
In this stock trading course series types of trading will be discussed in future articles, and we will find that simple definitions combined with careful observations can lead us towards success.
A simple overview will be our starting point , so that you can see how things will fit into the big picture as we proceed . Then we will start with our discussion of the market in a trend run . After we make our observation about trends , we’ll look at how the time period analysis and Drummond Geometry tools combined will help us figure out where the trend will come from , and where it will end . The monitoring tools will also be observed, the envelope and the 1-1 zones , fit in with the collection that is growing of observations that are practical and theory. In the end we’ll suggest some rules for trading that may provide some help as your own trading plan is developed.
So, let’s get started ….
We divide all market activity into two major divisions : markets in a trend and those in congestion. We further divide congestion into congestion entrance, congestion action, and congestion exit . We add trend reversal as a final market condition , giving us fiver different types of trading.
The definition of a trend is definitely attached to the close of the bar position vis-à-vis the Pldot . To the trend definition there isn’t another element , though there will be lots to say about the characteristics of various trends . Trends are always defined by one rule: If there are three closes on one side of the Pldot , it is a trend . This rule is known as the three close, and there is no kind of trend that can exist without this rule . It will never occur . Next in our series on Stock Trading Course Congestion Entrance will be the topic .
