Remember the LORD for it is he who gives you the ability to produce wealth and so confirms his covenant... Deut. 8:18

Friday, January 9, 2009

PRICE ACTION: SIMPLE WAY TO TRADE

"What is the perfect way to trade a market in the midst of conflicting views and opinions?" asked a friend recently. It's a perfect legitimate question.

Last week, I suggested that the trend is up for commodities on the indication of a rise in CRB index. Yesterday there was a correction in most Asian markets when oil plunged from $48 to $42. And CRB pullback from 234 to 228. How then does one enter a trade in this unclear market trend,?

The best and simplest way to trade a market has always been the price action/movement.
News, theories and indicators are there to help us anticipate. But finally the price action alone must determine whether we actually buy or sell.

Devise your own trading trend by looking at price actions formed over the previous 30 days, 7 days, 3 days (T+3) and 3 hours.

There are potential strong rally in bear market which can profit those who learn to see and follow the trend in PRICE.

1 comment:

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