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What are Trending Stocks?Trending stocks are stocks whose price movement, in a particular time frame, is either up or down. Not sideways.Trade with the TrendThe trend is your friend, and you should always trade in the direction of recent price movement. So, when the stock is trending up, you should only buy. When the stock is trending down, you should only sell. Trade with the trend, not against it.Stocks never trade in a straight line. Their direction and momentum are constantly changing. So how do you determine the trend of the stock? Step back and take a look at a longer time frame. If you are trading from a daily chart, look at a three month chart. Does the stock appear to be trending in one direction or the other, or is it in a sideways movement? Now, look at a weekly chart. Is there a clear direction? Look to see if it is close to an area of support or resistance. There is a lot to consider before you trade. Price is King and reigns supreme! Your favorite indicator may be giving you a buy or sell signal, but just remember that the price doesn't have to obey the indicator. The price is always right. Never go against the trend!!
Look at this stock, see how there is no clear direction.
Which of these two stocks would you rather be trading. If you are just learning how to invest in stock, this is some of the best stock investment advice I can give you. Trade with the trend. Leave Trending Stocks and go to Home Page.
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