Saturday, December 01, 2012

Example of a trending market

You don't have to be an emini futures trader or even a trader in general to appreciate a nice trend.

The image that follows shows such a trend.

It is a picture perfect example of a trending "market" and I put the word "market" in quotation marks because this is not a typical market, not something that you can trade, but something that changes depending on the human participation in it, so in a way it can be called that way, at least in some general sense of this word.

This market is the number of page views of this blog. The data points represent the monthly views.

As you can see from the image, the graph shows higher highs and higher lows, which characterizes an uptrend. In a downtrend, you want to see lower lows and lower highs. If neither situation is clearly present, you are probably stuck in a range and most traders don't like to be stuck in a trading range.