Trading guidelines

[Henrik Ekenberg]

• Start with the weekly price chart to establish the long term trend, and then work down through the daily and hourly charts to trade in the direction of that trend. The odds are better if you are trading in the direction of the long term trend.
• In Bull Markets, the best strategy is to buy the dips. In Bear Markets, the best strategy is to sell short into each rally. Always go with the path of least resistance.
• Support and resistance levels can hold for long periods of time; the first few breakout attempts usually fail.
• The more times a support or resistance level is tested, the greater the odds that it will be broken. Old resistance can become the new support, and the old support may become the new resistance.
• Trend lines are the easiest way to measure trends by connecting higher highs or lower lows, and they must always go from left to right