In investing, one of the most important aspects of chart reading is identifying the change of trend in individual stocks and in the general market. When analyzing a change in the market’s trend, we count days of accumulation in search of a follow-through day. When analyzing a stock trend , we analyze technicals in the stock’s chart to create a trend line.


A trend line is one way to initiate a position from an alternative pivot. This is an advanced and rather aggressive strategy, so make sure that you are initiating in sync with the market’s trend and have your sell rules clearly articulated for this stock, in case you are wrong.


To see a stock’s trend line, draw a temporary line on the chart by holding down the Control Key (Ctrl) on your keyboard, then clicking and dragging your mouse across the chart. You’ll want to start the line going back to the first of three prior highs and not  stop dragging until you get to the last one. Now right-clickon the trend line and select “Set alert.”  Now, when the price of your stock crosses that trend line, MarketSmith will send you an alert that will inform your decision to enter that position.


 

If you have the MarketSmith Mobile App, you will receive a push alert directly to your mobile device. You can also opt for email notification as well.

 

 

If you would like to learn more about alternative entry points, watch our webinar “Identify Alternative Buy Points Using Trend Lines,” by clicking here.

 

As always, if you have any questions, you can reach us at (800)424-9033 or at reachus@marketsmith.com.

 

Best returns,

 

 

The MarketSmith Team