Trend Trading strategies

Summary

A historical approach to trends, from Dow to Elliott, Gartley and Gann. None of these great contributors subscribed to the adage "The Trend is Your Friend". Moreover, their legacy releases us from that idea. Whose friend is the Trend? A Historical approach to trends Abstract: Buy low and sell high? Buy high and sell even higher? Trend is an abstraction, almost irrelevant... What is the legacy of the forefathers of TA? Charles Dow: Some of its basic tenets: - The primary trend is inviolate - The averages discount everything - The theory is not infallible - The averages confirm each other - Volume confirms the trend Some of its basic tenets: - The primary trend is inviolate - The averages discount everything - The theory is not infallible - The averages confirm each other - Volume confirms the trend Ralph Nelson Elliott Rules & Guidelines The sequence is constant across all timeframes Time as less Important that form Actionary movements are the most profitable The market spends more time in corrective mode than in impulsive mode Alternation and equality are pan of the market structure and Fibonacci... The sequence The ratios H.M. Gartiey 'The best investment opportunity" Occurs with a 1/3 to 2/3 reversal The "sweet spot' is one of low risk to high, reward relationship Much better that a H&Ss Offers strong reasons to stop and target placements Volume confirms the pattern Gann: Added time dimension Multiple confluences Finding turning points Conclusion: Trend Trading strategies are based on the assumption that markets do trend, but its purpose is to find key turning points. Two choices become very good at finding turning points or develop a method where entries are of second importance. Related content: Where Is The Dow Going? How To Use Gann Indicators Elliot Wave principle Author: Gonçalo Moreira