What is the long term stock market
Trends: Interesting facts about short-, medium- and long-term trends
Markets move in trends. Stocks move in trends.
If you now want to make money by investing in stocks: Would you be more likely to succeed in an upward or downward trend?
If you have never asked yourself this question when buying a share - perhaps because you always only follow the recommendations of others or are fascinated by the grandiose prospects of individual stock corporations - then in my opinion it is high time you looked at the topic Deal with chart technique.
It is not for nothing that an old stock market adage goes: "The trend is your friend." Translated this means: "The trend is your friend."
Chart technique offers you simple tools with which you can track the trends of markets or stocks.
You can even find most of them for free on the Internet with a little effort.
Interesting facts about trends
But before you start the analysis in a hurry, you should know a few more details.
Because: trends are not just trends. Trends exist on several time levels.
For example, the stock markets can be in an upward trend (bull market) in the long term (from several months to years), but in the medium term (from several weeks to months) in a downtrend (bear market).
On the other hand, if you only look at a period of a few days to a few weeks, you may discover a bull market.
Up in the long term, down in the medium term, up in the short term - at first glance, that doesn't seem to really go together. What sounds absurd at first glance becomes clearer when you look at the following graphic.
DAX 30 trends: long, medium and short term viewed
It shows the course of the DAX from the three different perspectives mentioned above. I have set 30 periods each - i.e. 30 months, 30 weeks and 30 days (from left to right).
DAX 30 trends: long-term, medium-term and short-term different
As you can see, despite the short-term downtrend, the DAX has a massive upward trend over the long term. From a medium-term perspective, i.e. the period since the beginning of the year, apart from a lot of ups and downs, nothing really has really happened.
This means that before you invest your hard-earned cash in a stock, you should also be clear about the time horizon over which you want to make money with that stock.
The ultimate trend tool: the day line
Before you start drawing yourself: The chart technique offers you a simple method of displaying these trends, which differ over time, in a price graph.
The appropriate tool for this is called the daily line, also known as the moving average.
Dax30 - cops stay brave ... Welcome to a new edition of the John Gossens Daily Dax video newsletter. I analyze the international stock markets twice a day for you and in the morning we always start with the view… ›read more
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