<h3>There is normally 3 market phases to be aware of, Trending, Trading and Sideways Markets</h3>
• You need to identify and distinguish between these phases.
• We will have a somewhat different approach in our Analysis and Planning depending of the phase.

No market or instrument will go in just one direction for ever, although a Trending phase on a stock/share may sometimes continue for months and even years.

<a href="http://tradinghubonline.com/blog/wp-content/uploads/2015/10/Trending-Trading-and-Sideways-Markets-18oct15.jpg"><img class="alignnone size-full wp-image-2212" src="http://tradinghubonline.com/blog/wp-content/uploads/2015/10/Trending-Trading-and-Sideways-Markets-18oct15.jpg" alt="Trending, Trading and Sideways Markets 18oct15" width="944" height="622" /></a>
<h4>1. Trending Phase</h4>
<h4>In an uptrend we get Higher Highs and Higher Lows, in a Down Trend Lower Lows and Lower Highs.</h4>
<h4>For an investor or long term trader this is the most important phase.</h4>
<h4>An investor will in an uptrend ad to his position on pull backs or corrections. Most often long term investors will have a Buy and Hold view.</h4>
<h4>A speculator must, in an uptrend, try to buy the lows on the pull backs or corrections, and take profit on the highs.</h4>
<h4>In a Down Trend investors might take a hammering with a Buy and Hold view. It is of course possible for an investor who does not want to sell his shares (maybe for capital gain tax reasons) to do a temporary hedge by selling CFD’s on the same share. He may then on a lower level buy back the CFD’s and stay long the shares. Another strategy might be to sell call options against the shares for premium (income).</h4>
<h4>Indicators like the RSI and Stochastic may in an Up Trending Phase get stuck in the Over Sold position for a long time without you getting as sell signal. But, if you get a pullback on the RSI or Stochastic without prices making a pullback, you might get a very good buy signal for a trend continuation trade.</h4>
&nbsp;