When you want to make money in the markets it is very important to look for trending stocks. Most of the time stocks are not trending, but there are always stocks to be found that are, so stick with these.

You can have a down- and uptrend that you can trade.

Uptrend
You can see higher highs and higher lows following each other, time after time. This will happen in Stage 2 that I talked about earlier.

Uptrend
Uptrend

Downtrend
You can see lower highs and lower lows following each other, time after time. This will happen in Stage 4 that I talked about earlier.

Downtrend
Downtrend

What do I do?
When I am looking for a new trade I first look at the 5 year weekly chart of a stock. Then I look in which stage a stock is trading (stage 1, 2, 3 or 4). Then I zoom in on the daily chart like I wrote under uptrend/downtrend to see if a stock is trending and if we just had a correction for an uptrend or a rally for a downtrend. I only want to get in at the best price possible. So the lowest price in an uptrend and the highest price in a downtrend.

There is more that I take a look at like: cycles, moving averages, fundamentals, support and resistance, risk reward ratio, Fibonacci, so please read our other articles or wait and come back for some new articles.

Trading trending stocks
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