What is an uptrend?
An Uptrend occurs when you have a stock that is making higher highs and higher lows. Let me give you an example.
Here we have a stock that is making higher highs and higher lows. Because of this we would call this an uptrending stock. All bullish trades should be made on uptrending stocks. In an up trending stock we would assume that the stock will continue going up, as long as it keeps making higher highs and higher lows.
There are a couple different ways to trade an uptrending stock. You can swing trade it. In a swing trade we would be looking to get in at support and out at resistance. If you were to swing trade here you would be looking to get in when it pulls back to support and get out when it reaches another high. Normally in a swing trade you would be looking to be in it for a short amount of time.
The other way you could trade this stock is to trend trade it. In a trend trade you are looking to buy a stock in an uptrend and sell it when it breaks support. So, if you were trend trading this you could get in when it pulls back support and ride it up. You would keep the stock until it breaks support. Typically a trend trade will be a longer term trade.
Remember no matter how you decide to trade you should develop your own system and paper trade.
Search Engine Optimization
|
