To make money in the stock market, traders need to find trending stocks. Staying ahead in the online trading game means identifying the characteristics of stock trends by learning how they move over time, and acting astutely and promptly. Here are some useful tips on how to find trending stock.
Stock trends are moving averages over a specific period of time, for example, 52 weeks. There are three basic types of stock trends:
– Down - stock price is moving downwards
– Up - stock price is moving upwards after a falling or flat phase
– Sideways - stock price remains more or less the same over time
In addition to this, there are also floors and ceilings, which indicate prices below and above which the stock has trouble breaking through, respectively.
The key to successful trading lies in identifying the signal to buy or sell stocks. But trends change quickly and so there is no definitive technique of making out a trend. The best way to find trending stock is to do market research and use some simple techniques. Reliable stock trading software is available for stock chart analysis. More historical data will be available for stocks that have been traded for a long time.
The two basic techniques of identifying a stock trend are:
– Bottom-up search
– Top-down search
The bottom-up search technique involves visiting established websites that list stocks making new 52-week highs or 52 week lows. By looking closely at individual stocks, traders can see what’s trending high, trending low, or just beginning a trend. Free commission stock trading research services are a very useful option for studying these trends. Their software is designed to help traders study bar charts and screen stocks in specific groups and market over a given period of time. Steadily rising stock prices indicate an upward swing and overall downward trends in a stock’s price indicate that it is trending downward.
In the top-down search method, traders can find trending stocks by examining industry groups with strong trends. Again, direct access trading platforms enable users to screen stock groups as well as industries on the basis of various criteria. After identifying the top performing groups/industries, they can then find companies and stocks that are worth further analysis.
Online Trading Services
Advanced software has made trading stocks online much easier for novices and seasoned traders. Commission-free online trading platforms come with benefits such as real-time charting and quotes, top lists, indicators, and more. Traders can set up and view their accounts even when they’re on the move.
Reliable online brokers offer commission-free software that can be used to study changes in trade volume and detect positive and negative trends. It also allows traders to observe the upswings and downswings of a specific stock or group of stocks so that they can decide when to buy and sell. Last but not least, by providing updates on stock market news, these platforms help keep traders informed about trending stocks.
Get in touch with us at 954-944-3885!
The content provided here is solely for informational and educational purposes and does not constitute an offer to sell or a solicitation to buy any security or instrument which may be referenced upon the site, or an offer to provide advisory or other services by TradeZero in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. Investors are advised not to rely on the information contained in this writing to make an informed investment or financial decision. TradeZero explicitly disclaims all liability for any action taken based on any information contained in this writing.