My earlier years I have labored long hours on FORECASTING using charting techniques. The risk of over zealous with this is one fail to ask the most basic question.
What happen between NOW until the FORECAST? What does one use since it is not and never a straight linear line? We can easily loose our focus and begin to act irrationally.
What happen between the start of a new trend till the end of the emerging calls for a system to FOLLOW the trend. How about chart patterns (Edwards and Magee) or Thomas Bulkowski?
I have not come across anyone explain the behavior of a trend and how we manage the trend in motion together with indicators tools!
Let us go back to the basic of a trend and the simplest definition of a trend is the price directional movement CONTINUES until the direction change!!!! It is a "repetitive" directional behavior and the trend ends WHEN the direction changes. It does NOT matter what intensity the trend in motion is as long the current DIRECTION remains intact.
The most ideal tool for this is the Moving averages and trend lines. One need to remember that MOVING averages of the TIME frame under observation LAGS when the price movement move is intensely STEEP! Under such condition and situation look into one lower time frame to get a better feel.
When the intensity is moderate trending around 45 degrees, the time frame observed is sufficient. However if the trend is "horizontal" flat, look into one higher time frame for change
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