Always Look for the Forest Through the Trees
This week I am presenting everyone with a guide both technical and visual to determine the larger trend. Hindsight is 20/20 but in the moment but we can easily miss the overall trend happening now or a major transition about to take place.
Analyse past historical market cycles. Where are the areas that could have been missed by a trader? Where was peak fear and euphoria? Where is the market today?
Accumulation
- Range after a long period of decline(generally 6 months)
- Flattening 200 MA on daily
- Long period of consolidation
Advancing
- Breakout from accumulation phase
- Forms an uptrend
- Price consistently holding above 200 MA
Distribution
- Range after an advance
- Long period of consolidation
- 200 Daily MA flattening
Decline
- Price breaks below the 200 daily MA and consistently stays below
- The ideal zone to become a long term investor
