Oftentimes when we are trading, we tend to focus on the near-term events and charts and ignore the bigger picture. This week I wanted to start with the very long-term charts and work our way towards the more recent events.
Being a trend follower, before jumping into any trade I ask myself a very basic question: is the security I am about to trade bullish or bearish? Truly this is sometimes one of the toughest things to do in trading to simply figure out the very basic question: am I going to be buying the security in question or am I going to be selling (shorting) it. I use various methods to determine this including: various trend indicators, market breadth, bellwether stocks, etc.
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