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How to determine the rally is short term or long term for stock market


kakalot

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Dear All,

 

We know that we will have the different strategy for the different trend: short term VS intermediate & long term trend (short term: 4 day to 3 weeks, intermediate 3 weeks to 3 month, long term: longer than 3 month). For example: if we know the rally is intermediate trend, we will hold the stock and don’t sell when trend show the weakness and may will reaction but if we think it is short term trend we will sell if we see some weakness in trend.

 

We also have the different stock selection for the different trend. For example, If market is rally in short, I will select high beta and high sensitive stock. if market is intermediate or long term trend, I will select stock in the Rhythm of market (good FA will plus point).

 

So trend determination is very important for us but I feel it is very difficult. If market move sideway for a long time and then take off we will know that this may intermediate trend or long term trend and we can use Point&Figure to calculate the target. If market don’t sideway or just sideway in a short time, it is a problem.

 

Please kindly share your way for determination the trend whether it is long or short term

 

Many many thanks for your helps

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Guest FloridaTrader
A few errors here. You should post info like this in the General Section. Second, this is stock market which is different from the forex market. Technical analysis is different for the two markets since the holding periods are different. Short term for the forex can be as little as a few minutes.
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Guest FloridaTrader

There are two types of trading, long term and short term, and each has to deal with a different range of problems and issues. Short and long term trading are relatively loose terms. Short term trading, also known as intra day trading, generally applies to people who trade within each day, looking to make a lot of trades and earn quick returns on the minute to hour movements of the markets. Long term traders vary from day to day, to weeks, to even years.

 

If you plan on using your own definitions of time frame types, you should post a disclaimer of your own definitions to prevent confusion with those that use the true universal definitions. I've been doing this for a very long time and I've never seen time frames as you're describing them.

 

Also, please post in the correct section of the forum. This has nothing to do with Forex Technical Analysis.

 

Thanks

Edited by FloridaTrader
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