Finding relative strength and weakness is always an excellent way to find watch list ideas, as long as their entries are timed so the price pattern and market internals indicate it is an appropriate trade. When the market is trending up, stocks showing relative strength with nice tight patterns can almost be played as strategies in and of themselves. Next, we look at one of the most important clichés in trading: the trend is our friend. We can learn a lot more about trends than the fact that they are our friend and, in Chapter 10, we discuss which trends are stronger, which cannot be trusted, and which might be ready to stall or turn.
Finding relative strength and weakness is always an excellent way to find watch list ideas, as long as their entries are timed so the price pattern and market internals indicate it is an appropriate trade. When the market is trending up, stocks showing relative strength with nice tight patterns can almost be played as strategies in and of themselves. Next, we look at one of the most important clichés in trading: the trend is our friend. We can learn a lot more about trends than the fact that they are our friend and, in Chapter 10, we discuss which trends are stronger, which cannot be trusted, and which might be ready to stall or turn.<br>
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