Let’s Talk About Stock Trends

2019-04-17 | Sam Shames

Let’s talk stock trends. What are a couple of things we want to see when a stock is trending? Higher highs and higher lows combined with momentum.

But how do we know when the momentum in a trend is cooling off and it’s time to GTFO (Get the Funds Out)? That’s where the 10X Bars indicator helps us understand momentum strength and stay in a trend.

The 10X Bars work as a trending indicator that looks at both a formula for momentum and volume to confirm the strength of a trend.

10X Bars work on the premise of visualized momentum. Essentially, the 10X Bars take a complex calculation of market momentum and translates that into easy to read and actionable color-coded candlesticks.

Green bars indicate strong trend up, red bars indicate strong trend down, and yellow bars indicate lack of conviction and “turning points” in markets. When we combine that info with the volume dots that show higher than average volume, we have effectively condensed multiple momentum signals in to one, actionable, chart.

When the 10X Bars are printing green along with volume dots, indicating higher than average volume, we want to stay in the market as the momentum is likely to lead to continuation.

10X Bars work in either direction and can even show times where a stock is consolidating, price is flat, but the momentum underneath the surface reveals a big move to come.

Many traders think that staying in a trend is the easy part of trading, however, how often do these traders sell too soon and not take full advantage of a large move?

With the 10X Bars we can focus on what really matters in a trend, consistent momentum. That allows us to stay in the trend and not get “bucked off the horse” too soon before realizing the full swing move.