Tuesday, December 21, 2004

Trending: By Kensey (This is quoted from

"The price action of a stock is categorized as either trending (moving generally up or down) or range-bound (sideways). Trending stocks are going somewhere in a vertical direction, while range-bound stocks travel horizontally.

A trend exists when prices keep rising or falling over time. This is called directional price action. In an uptrend, each rally (upsurge) penetrates a higher price level than the prior rally, and each retracement (fall) stops above the level associated with the prior retracement. It's like a set of stairs at an angle."


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