Trend Study and Graphing

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Trend Study & Graphing
Discover important stages of a stock trend

Basically, accumulation takes
place with institutional trade when
volume boosts.
This is the initial stage of a stock
trend when brokers start acquiring a
security or add to present status.
V
O
L
U
M
E
Accretion

Accumulation and
distribution of shares, of
stock, ultimately drives
price cycles upward and
downward. Price cycles
continually fluctuate
between accumulation and
distribution periods,
creating opportune times
for investors to continually
purchase and sell shares of
stock.

There is no odd
price stroke.
The highs get higher on
when the market is up and the
lows get lower when the
market is down.
Follow this trend to make
money regardless the
status of market.
Main Stage (called continuation)

By definition, accumulation of shares occurs
when buyers purchase or “accumulate” more
shares at a stock’s “ASK” price, in comparison
to selling or “distributing” more shares at a
stock’s “BID” price.
Typically, accumulation of shares will occur
during a “range-bound” period, where price
trades within a given high and low range.
The picture above depicts a “range-bound”
period, where accumulation of shares is
occurring. Accumulation of these shares
increases demand and shortens supply, thus
increasing the stock’s price over a given time
period.

Price resides
moderately
constant at the
trading range.
As the volume of purchasing and
selling stays unaffected for hours,
days, weeks and even months
because there is no opportunity to
get genuine profit.
A rectangular is
used to indicate
consolidation models
on the charts.
$ $
Consolidation (called congestion)

A temporary back
off from the key trend
to the maintain level of
prices!
Retracement, it is a
right time to make
a purchase.
Retracement can be
killing for happy-go-
lucky traders.
$
Retracement (called correction or pullback: retrait)

Periods of re-accumulation most often follow
price trends, formed by initial accumulation
periods. Re-accumulation is also considered a
trend continuation period.
Typically, re-accumulation of shares will occur
during a second or third “range-bound” period,
where price trades within a given high and low
range.
The picture above depicts a second “range-
bound” period, following an uptrend, initiated by
an accumulation of shares.

At this stage, traders likely to
sell in huge quantity as they
believe the security can’t go up
to any further extent.
Distribution happens mainly with
institutional selling when
volume drops off.
Allotment

The trend amends. For that reason, it is perhaps
right time to sell.
U-Turn

By definition, distribution of shares occurs
when sellers sell or “distribute” more shares
at a stock’s “BID” price, in comparison to
buying or “accumulating” more shares at a
stock’s “ASK” price.
Typically, distribution of shares will occur
during a “range-bound” period, where price
trades within a given high and low range.
The picture above depicts a “range-bound”
period, where distribution of shares is
occurring. Distribution of these shares
increases supply and decreases demand,
thus decreasing the stock’s price over a given
time period.

Periods of re-distribution most often
follow price trends, formed by initial
distribution periods. Re- distribution is
also considered a trend continuation
period.
Typically, re- distribution of shares will
occur during a second or third “range-
bound” period, where price trades within
a given high and low range.
The picture above depicts a second
“range-bound” period, following a
downtrend, initiated by an distribution of
shares.

When trends are altering
quite rapidly, make out how to
progress in such situations.
To expose, you can use
Momentum & Breakout.
Impetus & Escaping

Most probably, trends are
likely to keep on. Generally,
momentum trading is done
by concentrating to profits
made or estimated by the
stock issuer.
Impetus Trading

(evasion)
Break down turns out when a
safety price leads through and
keeps on above-or below-the
struggle or support line.
It forms a novel trend with
new support and resistance
level.
Getaway (evasion)

A one-time breakout perhaps
no more than an irregularity
which is called false breakout

Keep your mind on to 2 or more
breakouts as they hint the
beginning of a new trend

An uphill breakout will source
prices to go up

A downhill breakout will lead
prices to go down

A false breakout can wreak havoc
for a day or two of trading

Do not acquire breakouts in
a bear market

Contact Logix Trading and discover how
you can get success in your day trading career!
Charting and trend study is not
necessary as such to start trading.

Trend Study and Graphing

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