Here Trend, Trend, Trend

A question in last night:

“What method is used to identify a trend?”

No one can identify a trend until it is over as a trend has a beginning and an end. A trend is not a moment in time so to speak. What you can know is where you will enter and exit before you ever enter.

Two links that may offer more insight:

1. http://www.michaelcovel.com/the-trend/
2. http://www.michaelcovel.com/2010/02/24/trend-following-day-trading-question/

4 thoughts on “Here Trend, Trend, Trend

  1. Michael, I think that is the funniest headline I’ve seen for one of your posts. Battling absurdity with absurdity. Good stuff!

  2. That seems to be one question that comes up over and over again.

    I like Ed’s no nonsense answer. His point is very similar to those put forth by Heraclitus, Parmenides, and Zeno(and many others) regarding the paradoxes of the discreteness of time and space.

    The resolution of this paradox may point one in the right direction.

    “The more things change, the more they stay the same.” –Alghonse Karr

  3. As Michael pointed out the correct resolution of the paradox lies in the realisation of the absence of an instant in time underlying a trend.

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