When to be in a market, when to be out? This is the basic evaluation trend analysis attempts to deliver to investors and traders. The underlying assumption of this approach is that stocks trend as market sentiment builds in one of three possible directions – up, down, or flat. In the case of bullish or bearish trends, investors are best to harness these forces and allow the market to deliver profits. For that reason investors should gravitate toward Stock Trends Bullish (if holding long positions), or Stock Trends Bearish (if holding short positions, with qualifications).
Although there is no certainty to price action, trend followers must determine if the prevailing trend is waning and be alert for moments when sentiment is shifting. In Stock Trends parlance these moments of weakening trend are signalled by a Weak Bearish or Weak Bullish indicator. Investors should be watchful of these stocks and ETFs. The triggers for buying and selling are often being hit.