Let's start with one of the most important — the good old uptrend.<\/p>\n
What is an uptrend?<\/p>\n
A trendline that points up… right?<\/p>\n
Well yes, but that's not enough.<\/p>\n
Why?<\/p>\n
Because without clear criteria to define our uptrend, we'll never know when the trend breaks!<\/p>\n
<\/p>\n
Here are our 5 criteria for an uptrend on a daily chart:<\/p>\n
1) Higher Highs:<\/strong>\u00a0stock is making new highs (see letters on chart below)<\/p>\n 2) Higher Lows:<\/strong>\u00a0 stock is not breaking below prior lows (see numbers on chart below)<\/p>\n 3) Rising 20 Day Moving Average:<\/strong>\u00a0indicates an improved short-term trend<\/p>\n 4) A Rising 40 Day Moving Average:<\/strong>\u00a0 indicates an improved intermediate-term trend<\/p>\n 5) Even Space Between the 20 and 40 DMA<\/strong>\u00a0(a.k.a. railroad tracks)<\/p>\n Here's a chart showing what an uptrend looks like:<\/p>\n Next Steps<\/strong><\/p>\n We recommend that you\u00a0pick out 10 stocks, and see how each of them fits our uptrend criteria.<\/p>\n By completing this exercise, you'll learn to quickly spot the REAL uptrends.<\/p>\n","protected":false},"excerpt":{"rendered":" In technical analysis, one of the biggest mistakes you can make is to not have clear criteria for the patterns you’re looking at. What do we mean by that? Quite often, you’ll hear traders use terms like head & shoulders and support and resistance. But you never hear But you never hear about the criteria they use to actually define these terms. In our T3 Technical Strategies and Trading the Pristine Method Programs, we pride ourselves on giving traders, particularly beginners, clearly defined criteria for the patterns we use. Let’s start with one of the most important — the good old uptrend. What is an uptrend? A trendline that points up… right? Well yes, but that’s not enough. Why? Because without clear criteria to define our uptrend, we’ll never know when the trend breaks! Here are our 5 criteria for an uptrend on a daily chart: 1) Higher Highs:\u00a0stock is making new highs (see letters on chart below) 2) Higher Lows:\u00a0 stock is not breaking below prior lows (see numbers on chart below) 3) Rising 20 Day Moving Average:\u00a0indicates an improved short-term trend 4) A Rising 40 Day Moving Average:\u00a0 indicates an improved intermediate-term trend 5) Even Space Between the 20 and 40 DMA\u00a0(a.k.a. railroad tracks) Here’s a chart showing what an uptrend looks like: Next Steps We recommend that you\u00a0pick out 10 stocks, and see how each of them fits our uptrend criteria. By completing this exercise, you’ll learn to quickly spot the REAL uptrends.<\/p>\n","protected":false},"author":19,"featured_media":10707,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[542],"tags":[50,24],"class_list":["post-8927","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-free-trading-education","tag-technical-analysis","tag-trading-education"],"_links":{"self":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/8927","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/comments?post=8927"}],"version-history":[{"count":2,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/8927\/revisions"}],"predecessor-version":[{"id":9407,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/8927\/revisions\/9407"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/10707"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=8927"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=8927"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=8927"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"\"](\"http:\/\/www.t3live.com\/blog\/wp-content\/uploads\/2017\/03\/Snip20170314_3.png\")
<\/p>\n