Trend Finding1

In finding the trend, we will begin with a theme. This chapter shows one way to find a trend in its infancy —just as it's being born. As the course progresses, we'll see variations of this theme, and build upon it. The variations exist in how we count the bars. The variations are either more or less conservative. We have started with what is the most conservative method here in this chapter. We will end, several chapters from now, with what is the least conservative method. The difference yields fewer (most conservative) or more (least conservative) trades. What I show will lead step by step into segment counting. Everything shown here is just as applicable to the daily or weekly chart as it is to the intraday chart.

Take a good look at the chart on this page.

There is away, aiul we "11 be seeing it on the following pages. Let's take a closer look.

"Wouldn't it have been fabulous to have caught such a nice trend? It's really easy to look back at that trend and say, "I could have made lots of money on that move." Trends are the easiest thing in the world to spot when we're looking back at them. But is there away to spot them sooner? How could we have gotten into such a more early, and ahead of most other traders?

If you took closely, from the veiy bottom, the first time we see 3 higher highs in a row are the 3 bars preceding the one that is the "buy" bar.

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