Trading Against The Trend

Stock trading against the dominant trend can be easy to to do if you focus on too short a time frame.

Looking at a daily trading chart may indicate a trend in one direction but, unless you are a day trader, it would be wise to first look at a longer term weekly chart to better understand in what direction the dominant trend is heading.

Regardless of the indications on the chart you are looking at always confirm your analysis by looking at a chart with a longer time period.

And don’t forget to be aware of where we are in the business cycle and how that impacts the stock you are trading in.

Dave J

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