ctalmadgebell

NOTHING is accurate 100% of the time. However, this is what I check to see if a trend is actually running out of steam: 1. Moving Averages - I use the 50/200 SMA. If the stock price is approaching one of these, then many traders will begin to dump the stock. 2. Divergence of the Volume direction with the stock price direction, i.e. the stock priced is increasing while the Volume is becoming lower and lower. 3. Indicators that show slowing momentum: MACD, OBV and ADX. If the majority of these are indicating weakness, I'll sell 1/2 of my position and move my stop/limit up close to the stock price. In this way I have 1/2 of my profits now and if the stock does turn down, I'll capture the other 1/2 at the higher stop/limit order. If the stock does not turn down, then 1/2 of my money is still along for the ride. This is a conservative way to trade. It allows me to have small losses, gain decent profits, and sleep well at nights. Others, may have risk tolerance and have a different apporach.