Skip to main content

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.


Popular posts from this blog

Brazil - in a bubble or on a roll?

A couple of years ago, no one recognized the real estate bubble even though it was under everyone's nose. Now, analysts and bloggers are seeing bubbles everywhere they look. One of them, they say is in Brazil whose Bovespa stock market index has doubled in the last 12 months. Does the bubble accusation hold water? I don't think so and here are 7 reasons why Brazil is by no means a bubble economy: Exports have held up over the past year thanks to demand from China for Brazil's soya exports and iron ore. This was helped by the the Brazilian government's drive to improve trade links with Asia and Africa. Export diversification, spurred by a more active trade policy and increased focus on "south-south" trade under current president Lula, helped mitigate the decline in demand from OECD (Organization for Economic Co-operation and Development) countries A "sensible" economic framework has been in place since the 1990's. This has included inflation

Thursday Bounce: Trend Busters, Swing Signals and Trend Leaders for July 9, 2009

This is a quick post to announce that we have published Thursday's Trend Leaders, Swing Signals and Trend Busters at Alert HQ . All are based on daily data. Today we have the following: 72 Swing Signals -- A couple of days ago we had 35 signals, today we have twice as many. Happily, we now have 65 BUY signals, a mere 4 SELL Signals plus 3 Strong BUYs. Whoo-hoo! 56 Trend Leaders , all in strong up-trends according to Aroon, MACD and DMI. There are 18 new stocks that made today's list and 60 that fell off Tuesday's list. 48 Trend Busters of which 5 are BUY signals and 43 are SELL signals The view from Alert HQ -- Talk about mixed signals. If you look at our Swing Signals list you would think the market was in the middle of a big bounce. BUY signals are swamping the SELL signals and we even have a few Strong BUYs. Yes, there's a good sprinkling of tech stocks and tech ETFs but the distribution is pretty broad-based with a good number of different sectors represented, eve

Trade Radar gets another update

Some of our data sources changed again and it impacted our ability to load fundamental/financial data. In response, we are rolling out a new version of the software: 7.1.24 The data sourcing issues are fixed and some dead links in the Chart menu were removed. So whether you are a registered user or someone engaged in the free trial, head over to our update page and download the latest version. The update page is here: Contact us if you have questions or identify any new issues.