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Monday, May 31, 2010

Trending and Trading Markets - which is which and how do you deal with them?

We constantly talk about trends here at Trade Radar and now we have an excellent post from our affiliate friends at Market Club that digs into the subject: Trending And Trading Markets – Finding The Best Indicators For Each.

The post discusses the difference between trending markets and trading markets and looks at the different strategies that are required for each type of market. Different indicators may come into play and assume greater importance depending on which kind of market we are currently experiencing.

Investors should remember that individual stocks may be trending while the overall market is in a trading range and vice versa. It can get complicated but Trade-Radar can help.

Primary among the features offered in the Trade-Radar Stock Inspector software is automated trend identification. The software will take a chart and display the classic trend line that touches either the highs or the lows. In addition, the software plots the regression line that shows the slope of price action. Furthermore, the software calculates Arron, MACD and DMI which are classic trending indicators. The simple red-yellow-green lights easily display whether the trend is up, down or indeterminate.

For trading markets the software also provides preferred indicators like moving averages, Stochastics and Williams %R, all with the same simple red-yellow-green indicators.

I would encourage you to read the post at the Market Club blog and then download the Trade-Radar Stock Inspector software to try out some of their strategies. Both are free and they complement each other so well.

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