The Past .. Present and Future ==== Profits everywhere !!! Is it ? ===== PART 3

Now that we have an idea the trend is about the start, the uneven, nonlinear, irrational growth and finally the end of the prevailing trend.

One of the interesting observation between a price trend and the clouds as there are similarities.

There are times we see clouds that are dark formation leading us to believe it is going to rain. Most of the times such formation confirm our belief and it did rain. This is like at time we feel strongly that the bull charge on the price is going for a correction and indeed it happen.

Occasionally, the dark clouds formation fails to rain leading to clear sky  and this is no different from the price trend that price consolidate sideways and continue to charge upwards.

The only time we know it is raining, is when it HAS already happen. Same goes to the price trend. Price trend change direction AFTER it has done so.

Forecasting or Prediction is ANTICIPATION and sometime they do fail like the clouds above.

What is more important is the CHANGE CONFIRMATION.

Do we act in anticipation? Or do we act upon confirmation?

Rain drop is a confirmation without the rain drop it is still anticipation.

Price change is a confirmation. How do we define, measure and confirm price change? When we have the answer to this. we have already solve the "equation".

In my case, I stick to Moving Averages and my selected preferred time frame.

While I put forth the tongue in cheek forecast, I monitor the moving averages movements and indicators formations closely. Indicators measure the inner price trend momentum and the moving averages CONFIRM the changes.