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Creating your own Trading System Continued from page 1. Let's look at some more charts that might not be so easy to identify.  There are two things to look for: what is the 50 MA doing, and what are prices on a whole doing. The 50 MA goes down, then up, then down, then up. Prices seem to be swinging around the 50 MA and you can visualize a huge sideways channel. In this case the graph shows a wildly swinging side-ways trend that can be traded like a swing trader.  The 50 MA is clearly going up, and the prices are swinging wildly around that 50 MA, but you can visualize a price channel going up. Because of the wild swings, this stock right now can be easily traded as a swing trader, and it can just as easily be traded as a trend trader because of the uptrend.  This is a nice example of a downtrend morphing into a sideways trend. You can see the sideways channel which can be used for swingtrading Continue to page 3. |
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