Trend Tracking Archive

  • Water may be held back by a dam, but if it breaks through the dam, you would know that it would continue downward until it reaches another dam, or some obstruction or resistance which would stop it. Therefore, it is very important to watch old levels of stocks or commodities. The longer the time that elapses between the breaking into new territory, the greater the move you can expect because the accumulative energy over a long period will naturally produce larger movements than if it only accumulated during a short period of time.

    Breaking Out

    Water may be held back by a dam, but if it breaks through the dam, you would know that it would continue downward until it reaches another dam, or some obstruction or resistance which would stop it. Therefore, it is very important to watch old levels of stocks or commodities. The longer the time that elapses between the breaking into new territory, the greater the move you can expect because the accumulative energy over a long period will naturally produce larger movements than if it only accumulated during a short period of time.

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  • While the investor may have made great fund selections, he never sold and held them through bull and bear markets alike. The end result was that his returns were mediocre at best. If that has happened to you, trend tracking can help you alleviate that problem.

    Investment Methodologies: Market Timing vs. Trend Tracking

    While the investor may have made great fund selections, he never sold and held them through bull and bear markets alike. The end result was that his returns were mediocre at best. If that has happened to you, trend tracking can help you alleviate that problem.

    Continue Reading...