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The 4 stages of a stock cycle

When analysing a single stock or an index it is wise to determine where the instrument is in the life of its cycle. Before we do anything else.

Accumulation
Up Trend -- Bullish
Distribution
Down trend -- bearish.

This helps us determine a number of things.

(1) Possible time frame
Long term
Medium term
Short term

(2) The way we are likely to trade.
Trend
Counter trend
Swing
Stay in Cash
Put the house on it

(3)Type of trade we are going to be searching for.
Breakout
Pull back.
Support/Resistance

(4) Type of signals we can expect.
Increase in volume
Decrease in volume
Gaps
Break of resistance
Holding of support

Do this with BOTH the stock you have in mind and its index.
You'll often find at important turning points a very clear confluence of Pattern in a great number of stocks and the index.
This was very clear in the top of 2008 and the recent bottom of 2009
Many stocks mirrored the index. It was clear that all was crashing down and all was coming to a halt.
Very few stocks will trade at a tangent to its index.
Get in Rhythm.

[ATTACH]45082[/ATTACH]

NEXT TOPICS

Looking for opportunity in each of the stages.
How to Find it
How to Trade it
How to Minimise Risk
how to Increase your Bottom Line.

<blockquote data-quote="tech/a" data-source="post: 668443" data-attributes="member: 257">The 4 stages of a stock cycleWhen analysing a single stock or an index it is wise to determine where the instrument is in the life of its cycle. Before we do anything else.AccumulationUp Trend -- BullishDistributionDown trend -- bearish.This helps us determine a number of things.(1) Possible time frameLong term Medium termShort term(2) The way we are likely to trade.TrendCounter trendSwingStay in CashPut the house on it(3)Type of trade we are going to be searching for.BreakoutPull back.Support/Resistance(4) Type of signals we can expect.Increase in volumeDecrease in volumeGapsBreak of resistanceHolding of supportDo this with BOTH the stock you have in mind and its index.You&#039;ll often find at important turning points a very clear confluence of Pattern in a great number of stocks and the index.This was very clear in the top of 2008 and the recent bottom of 2009Many stocks mirrored the index. It was clear that all was crashing down and all was coming to a halt.Very few stocks will trade at a tangent to its index.Get in Rhythm.[ATTACH]45082[/ATTACH]NEXT TOPICSLooking for opportunity in each of the stages.How to Find itHow to Trade itHow to Minimise Riskhow to Increase your Bottom Line.</blockquote>

[QUOTE="tech/a, post: 668443, member: 257"] [B][SIZE="4"]The 4 stages of a stock cycle[/SIZE][/B] When analysing a single stock or an index it is wise to determine where the instrument is in the life of its cycle. Before we do anything else. Accumulation Up Trend --[B] Bullish[/B] Distribution Down trend --[B][COLOR="red"] bearish[/COLOR][/B]. This helps us determine a number of things. [B](1)[/B] Possible time frame Long term Medium term Short term [B](2)[/B] The way we are likely to trade. Trend Counter trend Swing Stay in Cash Put the house on it [B](3)[/B]Type of trade we are going to be searching for. Breakout Pull back. Support/Resistance [B](4)[/B] Type of signals we can expect. Increase in volume Decrease in volume Gaps Break of resistance Holding of support Do this with [B]BOTH[/B] the stock you have in mind and its index. You'll often find at important turning points a very clear confluence of Pattern in a great number of stocks and the index. This was very clear in the top of 2008 and the recent bottom of 2009 Many stocks mirrored the index. It was clear that all was crashing down and all was coming to a halt. Very few stocks will trade at a tangent to its index. Get in Rhythm. [ATTACH]45082.vB[/ATTACH] [B][SIZE="4"]NEXT TOPIC[COLOR="red"]S[/COLOR][/SIZE][/B] Looking for opportunity in each of the stages. How to Find it How to Trade it How to Minimise Risk how to Increase your Bottom Line. [/QUOTE]

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