The market moves in steps that are definite, and the steps can be set apart and then studied, one at a time . Also, these steps follow each other in a regular sequence , and that sequence can be defined and analyzed , piece by piece .

If the type of trading is understood that is manifested by the market at a particular moment, we can figure out techniques and tools that work the best for that particular kind of market activity . Furthermore , if we know which type of trading came before , the trading occurring now , and the following trading, it will give us an advantage . We will always be able to choose the best tools to use , and we will be armed for what is going to occur. When it comes to trading, that is a big part of the battle.

Hard earned experience and a quality stock trading course has taught us that the trading definitions need to be very clear, or the analysis done will quickly become without value . We need definitions that apply to all markets , within any time-frame. These definitions need to be simple, as well as robust.

A good trend is loved by traders . Everybody wants one , for their very own , and understandably so , since a great deal of money can be harvested in a good trend .

How should you trade a trend? Well, there are a number of tactics that one can use . Some of the older traders believe trends happen to be easy because any plan is going to work . Because there is one direction to the prices, even if you have a poor trade position when you enter , this won't matter, since the trend will bail you out in the end . This maxim has a bit of truth , but nevertheless there are a lot of refinements that we can bring to trend trading .

One thing learned by market analysts is that stock trading course how a trend should be recognized as early as possible , and the trend as defined by Drummond Geometry , based on the Pldot and close relationship , allows this to be done . You will recall perhaps that three closes on a side of the Pldot as a definition defines a trend . After the third close you are in a trend .

This happens to be significant because a trend's most lucrative and best part often occurs early on, when it gets its start . After you recognize a trend you need to stick with it as long as it is there. If possible , you will want to add pyramiding, so you grow profits quicker as the trend develops.

Hanging on board with a trend is one of trading's best ways to make some money . If you have learned nothing else in your education , you should have knowedge that your style of stock trading course trend formation is a fundamental building block of a system for trading .

Sounds good , but how exactly does one time the entry to a trend ? And in a trending market how do you manage a trade ?

Trends are all different , there are slow ones and fast ones and others are old and some are young .

First we will consider the fresh new trend . The market has been in congestion for some time , if you're a swing trader perhaps for days, or for some hours for day traders . The congestion parameters are quite clear . Then suddenly there is a change in conditions , often being news driven. There is quick movement of the market in one direction.

This is when you act fast. Get in the trends direction as fast as possible and then hang on . The point you enter is less important than the fact of getting aboard . This move will last for days or hours so the sooner you get on board, the better off you'll be! As it breaks the parameters of congestion you can buy into this trend or as the next bar goes up to the top of trading bands . If the trend is real and has new energy to it, for some time you probably won't see deep retracements !

Contrast this to a mature trend that has been going on for a while . Can you still get aboard ? Sure it is , but if the energy is "mature" and starting to lose a bit of its oomph , your entry techniques should be more cautious . If this occurs you should be looking for a pause in the trend , a retracement of price to the midline at the very least . Ensure there is enough potential there by checking on the higher time period , enough that it is worth getting involved in a trend that is not fresh anymore.

If you're not sure about the guidelines spending some time looking at a chart will surely bring your understanding to a higher level . And most people can get advantages from looking at stock trading course in a training course of their choice , as they hone skills for exit and entry.

Next time we'll talk about entering and exiting congestions .

Congestion action trading is the topic for today. A market that is in congestion action is one that goes back and forth between congestion confines , between resistance and support (or, in Drummond Geometry terms, between the dotted line and the block level ). This is action in the market that happens in congestion , and when there is no trend run . The level that was created by the preceding up trend's highest high is what is referred to as the Dotted Line, or in a down trend, the lowest low . The first Block Level is the low of the first bar that closes on the opposite side of the PLdot in a uptrend , or in a down trend, the high of the first bar to close on the PLdot's other side .

Once you have a sufficient understanding of congestion action trading theory, patterns, and characteristics , it can be quite lucrative . It's a lot like harvesting a good crop. Congestion action trading can be real bread-and-butter trading .... and even more, you can buy the table to hold the bread , and a house for the table , and for the house you can buy an estate, and the car, the driver, and the boat, and the plane, and all the other toys or essentials you may or may not desire . Essentially, there is a lot of potential in congestion action trading , if you take time to learn everything you can about it .

What exactly is congestion action trading anyway?

One effect of stock trading course in this way with Drummond Geometry is that the definitions are clear . There is a trend run for prices or there isn't . It is not is a trend run when after three or more closes on one side of the PL Dot it closes on the other side of the PLdot . The market is in congestion if it is not in a trend run . Simple, and clear .

The first bar when there is a close on the trending dot's opposite side is the congestion entrance bar . Then it can be said that the market is in congestion by definition . When congestion is first entered we know that a dotted line as well as a block level get created. This particular block level if the very first block level of this congestion. So , congestion action is the name for that market action which gets started with the congestion entrance bar and goes on for a time that is not defined until we see three closes on one side of the PLdot , showing the beginning of a new trend .

Let's take a look at how congestion limits are defined with stock trading course, as well as how expansion can occur .

Congestion action defines the parameters of congestion , which is also known as the confines of congestion . You will remember the block level and the dotted line are what define the confines of congestion , and that the first block level is established by the congestion entrance bar . But these levels can be expanded . If the price ends up going outside the dotted line or block level, while there is still congestion in the market ( without three straight closes occurring on the one side of the PLdot), then price is redefining the confines of congestion and there can be established an even larger congestion . This can happen several time before you see a new trend run .

Next time we'll talk more about congestion trading in the technical analysis explained series.