3. Trend Direction
Trade only in the direction of the trend:
Active or Reactive?
Many investors follow active strategies but end up being reactive, rotating in and out of stocks at the wrong time.
Colin Twiggs' free weekly review of the global economy will help you identify market risk and improve your timing.
Charles Schwab is charted with 7-day and 150-day exponential moving averages, used to track the primary trend.
By October 23rd, when the market signals an up-trend [M], the stock is trending strongly upwards:
This is also evident from the successively higher peaks and troughs on the secondary cycle and the new High reached on October 20th.