Hail, For instance AMD is in an uptrend very short term (intraday), a downtrend on a daily basis, and still in an uptrend on a weekly basis. Trends tend to continue in the absence of fundamental changes.
Um, looks like your continuing trends are somewhat at odds with one another. Which trend will continue?
This is what really happens:
TA Joe looks at the stock chart. He finds all the places where the "trend" changed. He reviews old news articles to find the changes he can justify based on real news. Then he dips into the big book of TA hokum, until he can come up with an excuse (and preferably using a different school of TA 'thought' for each point) for the all of the remaining inflection points. At least, those he deems 'important', and those that show up on an arbitrarily chosen scale (intraday, daily, weekly, etc.) of pricing data. It doesn't matter if the justification for one point contradicts the result at another, or the lack of a point somewhere else in time. False positives and negatives are of no concern.
Having completed this exercise, he can proudly announce that trends continue in the absence of "reasons" for them to do otherwise.
TA Joe has not taken "Intro to Scientific Methodology 101", though he tends to be somewhat technically (no, really) inclined, and puts too much faith in the opinions of those who market themselves as experts, especially if what they advocate seems to be complicated, and involve a lot of calculations, something TA Joe feels he's quite good at himself.
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