For a while now, I have been staying updated with how the major markets are moving. Obviously, we use them as an indicator to see where the overall market is going.
When it comes to analyzing where things stand I look at the moment rather then depend on the past. What I mean is that we can pay attention to historical resistance and/or support, but to really get a good glimpse of what is actually happening RIGHT NOW I prefer looking at what type of trend the chart has formed.
If you can determine the trend (aka trend trade), then you should be able to profit off huge swings.
Very rarely do stocks go straight up and straight down or other way around. Usually it goes up, flattens out into consolidation or sideways movement, and the heads up or down. The whole point of trend trading is to profit off that break of the sideways movement.
Watch the video above, to get a better understanding of how to trade trends.