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A good trend is loved by traders . Everybody wants one , one that’s their own, and it’s understandable , since a lot of money can be made in a good trend .

Wondering how to trade in a trend ? There are a variety of tactics you can use . Older traders sometimes say trends are pretty easy because any plan is workable. Because prices are always moving in one direction , even if you start out with a bad trade position, this won’t matter, because the trend will bail you out eventually. There is some truth in this old maxim , but many refinements can be brought into trend trading.

When it comes to market analysts, one thing they learn is that technical analysis explained how a trend should be recognized as early as possible , and the trend definition by Drummond Geometry, based on the Pldot and close relationship , allows this to be done . You’ll probably remember that the definition is three closes on one side of the Pldot is the trend defintion. When the third close occurs, you have a trend.

There is importance to this because the strongest and most lucrative part of a trend is often the earliest part , when it gets its start . Then after a trend is recognized as long as it is around you need to hang with it . If your trading situation permits , you want to add to your position by pyramiding , so that as the trend develops your profits also grow more rapidly .

Surely getting aboard a trend and hanging on tight is one of trading’s best ways to make some money . If nothing else has been learned , you should at least know that how your style of technical analysis explained trend formation is a fundamental building block of a system for trading .

You may think this sounds good, but how can you time your entry into a trend? And in a trending market how do you manage a trade ?

Not every trend is alike, some are slow and some are fast and some are young while others are old .

First let’s look at a fresh trend . The market has been in congestion for some time , perhaps for many days if you are a swing trader , or for day traders for quite a few hours. The parameters of the congestion are clear to you . Then the condition change suddenly, often driven by the news . The market starts to move rapidly on one direction .

This is when you act fast. Get in the trends direction as fast as possible and then hang on . The exact point of entry is less critical than you jumping in. This is a move that will last for many hours or days so it’s better to get in as soon as possible ! As it breaks the parameters of congestion you can buy into this trend or as the bar goes back up to the trading band top. If the trend is real and has new energy to it, for some time you probably won’t see deep retracements !

Compare this to a trend that is mature . Can you still get aboard ? Sure it is , but if the energy of the trend is mature and losing punch, your entry techniques should be more cautious . In this case you should look out for a pause in this trend, at the very least a retracement of the price to the midline. Check on your higher time period to make sure there is sufficient potential left in the trade , enough to make it worth entering this no-longer-fresh trend .

If you’re not sure about the guidelines spending some time looking at a chart will help you understand more . Most traders will benefit from taking a closer look at technical analysis explained in a good course, as they hone their entry and exit skills .

Next time we’ll talk about entering and exiting congestions .

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The market moves in definite steps , and the steps can be set apart and then studied, one by one . Furthermore , these steps progess in a sequence , and that sequence can be defined and analyzed , piece by piece .

If the type of trading is understood that is manifested by the market at a particular moment, we will be able to come up with the tools and techniques that do the best job for that particular kind of market activity . Also, You’ll also find, if we know which type of trading came before , the trading occuring now , and the type of trading that will follow , it will give us an advantage . We’ll be able to choose the top tools, and we will be armed for what is going to occur. Sometimes that’s half the battle in trading .

Hard earned experience and a quality technical analysis explained course has shown that our definitions of types of trading need to be very clear, or we lose the value of our analysis. Definitions need to be those that can work with any market, at any time . These definitions need to be simple, as well as robust.

Within the technical analysis explained series some articles in the future will discuss types of trading , and we will find that simple definitions combined with careful observations can help us reach success .

We will start with a simple overview , so you’ll be able to get the big picture. Then we’ll look at a trend run in the market . After looking at trends , we will see how the Drummond Geometry tools combined with time period analysis will enable us to find out where the origination of the trend will be, and where it is likely to terminate . We will also see how our monitoring tools , the 1-1 zones and the envelope , fit in with the collection that is growing of observations that are practical and theory. Then we’ll show you some trading rules that can be helpful as your own trading plan is developed.

Let’s get going….

Two major divisions will be used to divide the activity of the market: trending markets and markets in congestion . We further divide congestion into congestion entrance, congestion action, and congestion exit . Trend reversal will be added as another condition of the market , giving us fiver different types of trading.

Trend definition is irrevocably attached with the position of the close of the bar called the Pldot. There is no other element to the definition of a trend , though there will be lots to say about the characteristics of various trends . This rule always defines a trend : If there are three closes on one side of the Pldot , it is a trend . This rule is called the three close rule , and there is no kind of trend that can exist without this three-close-on-one-side-of-the-PLdot rule . This will NOT happen. The next part of the series on Technical Analysis Explained we will talk about Congestion Entrance .

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