Some time ago, I read in the following Thread about Linda Raschke’s Video presentation on Trends:


http://www.forex-tsd.com/general-discussion/8003-how-use-support-resistance-effectively-41.html#402. Page 41.


I was so impressed with her presentation that I feel that all of us should look at this at least once a week until we are as familiar with it as she is and still refresh our minds every month. I take the liberty to summarise what she is saying in this presentation (it is by no means enough, you need to listen to it) in bullet-point form to serve as a quick reference:
• Trends have greater odds of CONTINUATION than reversal on ANY TF.
• A trend seldom reverses without warning.
• Trends tend to begin out of a LOW volatility environment. It starts slowly and then ACCELERATES.
• Momentum precedes price.
• Where the last DOWN-swing is greater than the previous UP-swing, the direction is changing. (and vice versa).
• Trends end in a CLIMAX, therefore the late stages of any trend, can be very dangerous.
• After a move to a new level, price winds back to an equilibrium level – when it breaks, it usually runs substantially.
• CONSOLIDATION is followed by a mark up and a mark down – cannot know for sure which direction it will break to.
• The longer the market straddles, the greater the potential move.
• Stops must be supported by Res/Supp-levels.
• The IDEAL divergence occur at the upper and lower Keltner Channels and tend to be 9 – 13 bars apart.

Best wishes.