"WallStreet" Surfers

[GreenReeper]

Even though momentum oscillators are best suited for trading ranges or zigzag trends, they can also be used to define the overall direction of the underlying trend. There are approximately 250 trading days in a year. This can be broken down into 125 days per half year, 63 days per quarter and 21 days per month. A trend reversal starts with the shortest timeframe and gradually spreads to the other timeframes. In general, the long-term trend is up when both the 250-day and 125-day Rate-of-Change are positive. This means that prices are higher now than they were 12 and 6 months ago. Long positions taken 6 or 12 months ago would be profitable and buyers would be happy.