Decision Point Trend Model Trading With the Trend An investor can greatly improve their chances of success by acting in accordance with the market trend, which is related to the direction of the market—up, down, or sideways. This is due to the fact that most equities and sectors tend to follow the market trend. For instance, more than 90% of stocks may be rising during a robust bull market. This improves your chances of selecting a profitable stock. Short-term (days to weeks), intermediate-term (weeks to months), and long-term (months to years) periods are the three main emphasis areas of Decision Point Trend Analysis .These definitions are general and can be reduced to more specific time periods (e.g., short-term could be hours to days). The trend in three consecutive timeframes should always be kept in mind, though, as they are all connected, and you should take all three into account when making investing selections. Although the longer term trend is the more significant and dominant, longterm trend alterations may initially be noticed in the shorter-term trends. Put another way, tactical decisions are taken in the near term, but the longer-term trend establishes the strategic attitude. Long-Term Trend Long-Term Pattern On a weekly or monthly chart, the long-term trend employs a Moving Average crossover signal. Both a "fast" and a "slow" MA are employed; the fast MA reacts to price changes more quickly than the slow MA because it is computed over fewer periods. Examine the monthly chart, which uses a 6-EMA and a 10-EMA (6-month and 10-month intervals), where each data point represents a month. The…
