Today I had a nice discussion with a few friends and it all veered down to identifying the trend and its reversal. Well we discussed everything from trend lines, moving averages, to indicators and oscillators. Everyone had their own personal choices; like I always say different strokes for different folks! I personally find the good old Dow Theory the best for this. The good old higher highs and higher lows or the lower highs and lower lows sequence the best way to identify the trends. It sounds too simple but then I guess in TA simpler is what works! The element of KISS rulez!!! Please do take a look at the chart below and try to see if watching this action makes a difference to your trading. What I am talking about? Just look at the chart below and maybe you can see your MONA LISA!!!
Chart courtesy of Trading Strategies.
"I am great believer in luck and I find that the harder I work the more I have of it."