Trends Marketing

Main Phases and Types of Currency Market Trends - Forex For Beginners

2011-05-28T06:10:00.000-07:00

Initially, the principles set forth by Charles Dow, were used for the analysis of established American indexes: industrial and rail. But with the same result the majority of the Dow theory, the analytical findings can be applied in the currency markets.

The indices take into account everything. According to Dow theory, any factor that could, one way or another, affect the supply or demand, always will be reflected in the dynamics of the index. Of course, these events are unpredictable, however, they are immediately taken into account the market and affect the dynamics of the indices.

On the market there are three types of trends. With upward trend each successive peak is higher than the previous and each subsequent decline is also higher than the previous one. With each subsequent downward trend below the previous peak and each subsequent "bottom" is lower than the previous one. When horizontal trend (flat) each successive peak (and decline) is about the same level as the previous ones.

Dow also provides three types of trends: primary, secondary and minor. The greatest value he attached to it is the primary or major trend, which lasts more than a year, and sometimes several years. Secondary or intermediate trend is the correction to the basic trends and usually lasts from three weeks to three months. These interim amendments (kickbacks) are from one to two-thirds (often half) the distance traveled prices during the previous (main) trend. Small or short-term trends last for no more than three weeks and are short-term fluctuations in the intermediate trend.

Despite the fact that the most common terms used to describe trends - short, medium and long term - defined by most analysts as time, in our opinion, is more properly a classification proposed by Thomas Demarco. The changes in prices, that used to take weeks or months, now taking place a few hours. With the increasing market liquidity, speed of information dissemination under the influence of the herd instinct of managers of investment funds, as well as many other factors, these timeframes continue to narrow. More correctly use the terms "short", "medium" and "long term" not in relation to time intervals, and in relation to the percentage change in prices.

A move by less than 5% - short-term, from 5% to 15% - medium-term, more than 15% - long-term. There is a special DeMark method for predicting the start of market trends - from medium to long-term. This method is based on a set of special factors - factors trends.

The main trend has three phases. Phase one, or the accumulation phase - when the most far-sighted and well-informed investors start buying, because all unfavorable economic information is already covered by the market. The second phase occurs when the game are those who use technical methods of following trends. After the economic information is becoming more optimistic, the trend is in its third and final phase, when the action takes the general public, and the market begins to boom, fueled by the media. Economic forecasts in newspapers and on television are full of optimism. This is the first sign of the end of the trend.

Indices must confirm each other. Here Charles Dow was referring to the industrial and railway indexes. He believed that any important signal to increase or decrease in rate in the market must pass in the values of both indices. Regarding modern technical analysis, this assertion means that the signal received from a technical indicator, must be confirmed by the testimony of another technical indicator.

The volume of trade should confirm the trend. Increased trade should occur at times when prices are moving in the direction of the main trends, and the reduction - in periods of retracement.

The trend is valid for as long as will not give clear signals that it has changed.

Stock Market Trading Strategies - Step One of the Wyckoff Method

2011-05-27T06:03:00.000-07:00

In the Wyckoff Course, Wyckoff teaches that the most important thing anyone can know about a market or an individual issue is its trend and the position that it occupies in the trend. The trend is the line of least resistance. It indicates the direction in which the price wants to move. Profits are more likely to be realized when positions are established that are in harmony with the direction in which the price has already indicated it wants to move.

Once a trend has been established, the future trend is likely to be the same as the current trend until the price reaches a position in that trend or exhibits price and volume action that indicates that a change in the direction of the trend should be anticipated.

Wyckoff classifies trends by the direction in which they point and by the duration for which they endure. From the standpoint of direction, trends are either up, down or neutral also known as a trading range. Up trends are best suited for long positions. Down trends are best suited for short positions. Trading ranges lend themselves to both long positions and short positions depending upon the position of the price in the trend. Trends come in a wide range of sizes. Trends can emerge and run their course within the period of one trading session, or they can last for years. A market or an individual issue will be in more than one trend at any one time.

For trading purposes, Wyckoff identifies four trends that matter most. There is the immediate trend, the short term trend, the intermediate trend and the long term trend. When these four trends are all pointed in the same direction, the price is likely to experience its most dynamic movement. However, profitable trading can consistently be realized even if all four trends are not pointed in the same direction.

The key to success is to have the trend that is being traded clearly and correctly defined and to know at all times where the price is in that trend. Knowing how the other trends are defined and what the position of the price is in those trends can be helpful because the position of the price in a trend not being traded can have an influence on the action in the trend that is being traded. However, positions should be opened, held and closed based solely on developments in the trend being traded. Wyckoff would frown on the idea of using the fact that the long term trend is up to justify taking a short term position on the long side, or any other combination of using the direction of one trend to justify a trade in a different trend.

To be used effectively, trends must be defined correctly. Wyckoff tells us that trends are defined by two consecutive support points or resistance points of equal importance. An up trend traditionally is defined by two support points. Down trends are defined by two supply points. Trading ranges may be defined by support points or resistance points depending whether they develop after the completion of an advance or the completion of a decline. Support points combine to form demand line for up trends. Resistance points combine to form supply line for down trends. In trading ranges, the support points combine to form support levels and the resistance points combine to form resistance levels. Trend channels develop when parallel lines are constructed through the appropriate points. The parallel line to a demand line in an up trend is the over bought line. The parallel line to a supply line in a down trend is the over sold line. In trading ranges, the parallel line to a support level is a resistance level and the parallel line to a resistance level is a support level.

Not every position in an up trend is suitable for establishing a long position. It is also true that not every position in a down trend is suitable for establishing a short position. Trading ranges may be used to establish either long positions or short positions. Here again, the position in the trend channel determines whether long or short positions are appropriate. There is one position in all trend channels that is generally considered inappropriate for establishing positions.

Determine the Trend Before You Trade

2011-05-26T07:33:00.000-07:00

Trend determination is obviously important for trend followers, but anyone trading in any style should be aware of the trend in the market they are trading. The overall trend can influence your trading style. If the trend is up, you probably will have a different way you treat buy signals from counter trend sell signals. If the trend is sideways, then applying a trend following method would be frustrating and probably not profitable. A downtrend in certain markets can have a different character than an uptrend. Beginnings of trends can be easier to trade than end of trends, in many cases. Therefore, it is important to know what the trend is.

But to complicate matters, there can be many trends at play in the same market, even on the same chart. There are trends within trends. Different period lengths on moving averages, or indicator inputs, can signal a different, often confusing and conflicting trend. There can be a counter trend down move on a 30-minute chart, while the daily chart is showing a powerful uptrend, while the monthly chart is showing a sideways trend. When they all line up, it is the most comfortable and reassuring time to take a trade, but if you wait for everything to be in synch you would probably trade very little, and often not in a timely manner. And often the comfortable and easy trade is the one everyone sees, and it often turns out to be untimely. It is best to keep it simple and just trade off the time frame of the chart you are analyzing.

Most of us want indicators to guide us, as indicators are quantifiable. We can lean on them with more confidence. However, the purest and fastest way to determine trend is just through studying the price structure. Price does not lag. Price is not derived from anything. It is current. It might frustrate, but it doesn't lie.

The easiest way to define a trend using price structure is by observing high and low swing points. Swing points, or pivot points, are price bars that have a high point surrounded by two or three lower highs on either side, or a low price bar surrounded by two or three higher lows on either side.

However you define the swing point, the idea is to have a series of prices that keep taking out the previous swing point in one direction. This is the same theory of a market making higher highs and higher lows, although this isn't always exactly true. Sometimes a pause will form in the price structure and prices temporarily go opposite to the trend, with the market making a lower high, but as long as a lower low is not taken out the uptrend is still intact.

These swing points are important to the price structure because they mark where prices stopped and reversed, at least momentarily. The market can then re-test these areas to see if price gets turned back again, or if price can overcome the previous resistance point and move beyond. The market is constantly testing whether trade is accepting or rejecting price and these swing points are the reference points for these tests.

Stock Market Trends

2011-05-25T07:29:00.000-07:00

An intelligent investor books profits by following the trends in the market. One who does not have the elementary knowledge about the share market thinks that downward movement of the prices means loss for the investor. A knowledgeable investor is able to make profits in any situation of the market. One takes advantage of both the movements of the market-upward and downward. One catches the movement in the prices at the right time and derives profits.

Stock Market Trends are divided into to Primary Stock Market Trends, Secondary Stock Market Trends and Secular Stock Market Trends. Further classification of the Primary Trends is, Bull Market. In this phase of the market, investor's confidence is at the optimum, they are on the buying spree anticipating higher financial gains. Exactly reverse is the position in the Bear Market. The investors fear recurring losses. The overall price reduction in the market index is 20% or more. Most investors hurry to sell off.

The duration of the Bear Market is difficult to predict.

Secondary Stock Market Trends are for shorter duration and the fluctuations are small. The time of this trend may be for a few weeks to a few months. These trends can be due to correction in the market. Such corrections may be due to adverse economic/political conditions or natural calamities. The fall in the share prices is generaly10%, but it should not exceed 20%. Bear Market Rally refers to increase in the prices of shares but the limitations is within the range of 10 to 20percent.

Secular Stock Market Trends are also known as Super Cycles. Several Primary Trends contribute to the making of this trend. The prolonged period of this trend may last from 5 to 25 years at a stretch. This is further classified into Secular Bull Market which are long Bull Markets within which are included the periods of short Bear Markets that will not have much impact to reduce the benefits of the preceding Bull Markets. The Bull Markets to follow make up for the losses incurred in the Bear Markets. Secular Bear Markets are having within them small Bull Markets that cannot nullify the losses suffered during long and large Bear Markets.

The Share Market Trends should not be confused with the day to day ups and downs of the market and the volatility. This situation occurs in the market due to a variety of reasons, some of which are beyond the scope of research. Nobody has ever been able to fathom why such things happen in the market. These developments are used to book profits by the intelligent investors. Broader trends are related to the economic health of the country.

The question of market trends has assumed importance in the wake of the deepest economic downtown the world economy is facing since the Great Depression. Doubts have been raised whether markets precisely reflect the state of the economy, as the indexes continue to slide notwithstanding the government efforts to arrest the downward trend. Some experts also opine that the market is responding to the steps taken by the government, it is trying to look forward and going sideways now. Restoring the flow of credit is the important factor to stability and ultimate recovery. The banking system is also in for a positive change, which will ultimately influence the market trends.

Why do the prices of shares go up and down? In reality the answer is simple. Companies earn money or lose money, the price of the share is, what the investor will pay for it. This is simple arithmetic. However, many other factors influence the price simultaneously, like the bank interest rates. If the interest rates are high, the company has to pay more and the profitability is affected, trends begin to play their role on shares and the investor will try to follow the trends.

Keys to Business Success

2011-05-24T06:46:00.000-07:00

In order to be successful at business ownership you need to know a few important factors. There are those who focus way to much on the financial aspect and neglect many other important keys. Business ownership is never an easy road, luckily there are many people who are more than willing to help you out along the way.

One of the most important keys to business success is the understanding that time is money. When you are in the business world, your common objective is to being in profits and make money. What you need to figure out is how to convert time into money. You need to make sure that every minute you spend working is with one hundred percent effort for maximum benefits.

Another important key to successful business ownership is the ability to meet people and make connections. This means everyone that you can think of including customers or clients, suppliers, staff, associates, as well as partners and investors. Always keep your mentor around, no matter how successful you become. Having a great mentor in the business world can be the one advantage you have above the rest.

It is always important to have the necessary knowledge and skills you need to run your business successfully. This doesn't necessarily mean academic college and diplomas, but also other skills that you may need in your industry choice. Don't go blindly into an industry without checking out the field first. Stick with knowledge and skills that have been universally tested and proven.

This type of knowledge includes information such as money making trends, marketing strategies, customer service, selling skills, negotiation skills, investment skills, as well as law skills. Always keep in mind that there is only so much you can learn. Don't waste your precious time on unnecessary schooling.

The History and Market of Saltwater Sandals

2011-05-23T07:33:00.000-07:00

Saltwater sandals are fast becoming a popular kind of footwear. They are sold mostly in southern and western markets in the United States. These sandals are made from specially-treated natural leather evident in their "interlink" strap and adjustable buckle straps around the ankle.

The birth of saltwater sandals was in the early 1940s, posing as a good alternative to the traditional leather sandals worn by kids. This is due to the leather shortage during the World War II. They resolved this shortage by making children's sandals out of scrap leather from leather boot-making factories. Although originally conceptualized and manufactured by the Hoy Shoe Company in St. Louis, Missouri, there are also saltwater sandals made in China.

The Hoy Shoe Company
The original and classic designs of saltwater sandals by the Hoy Shoe Company are double stitched and molded in vulcanized rubber. These are featured with adaptable straps for narrow to wide fittings, and to accommodate the sizes of infants to pre-teens.

The Trending Market
For over 60 years now, it remain a summer fixture in children's footwear. The more recent design is Hoy Shoe Company's Sun-San Saltwater Sandals for women. New York Magazine's fashion editor, Sarah Bernard, even made a comment last November 2, 2007 about it. She criticized saltwater sandals as an "Emerging Ugly Shoe Trend for 2008" while comparing it with Ugg boots and Crocs.

Amidst the criticisms, it remain as one of the exceedingly popular modern sandals made from highly durable materials. They do not wear and tear easily and they have proven themselves in terms of quality. It is a bestseller among parents. In fact, they are no longer confined to the southern and western markets of the US. They are now globally supplied because of the gross demands of customers.

Sandal are not only comprised of natural leather but their buckles are made from rustproof metal and brass material. They are sold in various colors like white, navy, brown, orange and pink, red, yellow as well as fuchsia, black and green.

The latest addition to it genre is the new Shark 11 Saltwater Sandal in Crazy Horse Color. Its design is like that of a fisherman's made from durable cowhide. It has a molded EVA sole with long lasting thread action by the bottom section of the sandal as well as an insole cushion. It has an extra fabric and a comfortable strap molded in its back section to reduce sweating and unpleasant odors. It has sizes for pre-teens, toddlers and infants.

Infant sizes are from 3 and up, depending on the built; and up to size 13 for pre-teens. For adults, women would range from size 5 and up.

Here are some of the in-demand saltwater sandals for kids in the market:

Ladies Fuchsia Saltwater Sandals
This saltwater sandal is great to wear on beach and pool outings. It has a durable brass buckle and an adjustable strap. It has interlocking straps that easily adjusts to the foot. The price of this saltwater sandal is $34.95.

Unisex Tan Saltwater Sandals
This saltwater sandal is made from all-original tan leather. It is best for summer and beach activities. It has a brass buckle that enables easy adjustments for the straps. Its interlocking straps conveniently adjust to the foot. It has vulcanized rubber soles and double stitching to ensure long lasting quality. It is good for both dry and wet conditions because it is coated with water-resistant sealants. The price of this saltwater sandal is $24.95.

Ladies Black Saltwater Sandals
This saltwater sandal is made from black leather and it has 1 buckle ankle strap. The price of this saltwater sandal is $15.99.

Tips on Saltwater Sandals
When using a pair of new saltwater sandals, it is best to loosen it up, particularly with the straps. You can do this by placing your thumbs inside its straps and pull them out towards the sides. This way, the interlocking leather straps are stretched. After this, hold your sandal in your palms and start squeezing the sides together, cupping the inside section of the sandal. This way, the straps are flexed and pre-stretched.

Stock Trading - Don't Wing it, Create a Systemic Approach

2011-05-22T01:25:00.000-07:00

Don't trade stocks inconsistently. Don't depend on gut feel, hunches, or whims. You must have a fully developed stock trading system. If you don't have your approach fully documented, where performance can be evaluated and rules tweaked, then you do not have a real trading system.

Your system should be written in such detail that another trader would be able for understand your system just by reading the rules - without an explanation.

To have an edge, and make money consistently, you need to have a precise, well-thought-out, set of rules that you can apply during any market condition. If your system is inconsistent, and depends on your gut, then you may do one thing during a trending market, but you may do something different under choppy market conditions. If this occurs, it becomes very difficult to determine if your trading will make money over time.

If, on the other hand, you applied the exact set of rules to a trending market and to a choppy one, you may find that, for every dollar your system earns in a trending market, it loses 45 cents to choppy conditions. In this case, you have a net profitable system.

It is also important that you understand your system's edge. Why does it make money? What basic market principle is it exploiting? Is it designed to capitalize on trends? Capture dividends? Buy low and sell high? Scalping? If you can't identify your system's edge, than its performance could be a matter of chance.

If your system adds no value to the market place, then there is no reason that the system will continue to make money.

More E-Mini Trading Setups With Support and Resistance

2011-05-21T07:58:00.000-07:00

It's not unusual to see traders using support and resistance to set up potential trades. The most common trade I see among novice investors is a set up that envisions the price action "bouncing" off an existing support or resistance lines. There are many versions of this particular trade, and it is not unusual to see small investors implement this trade over and over. To be sure, using support and resistance lines as potential setups is very common.

Unlike the trade I described above, where the small traders are looking for a bounce off a support or resistance line, I am looking for a continuation through a support/resistance line. This makes sense at several levels. First and foremost, I'm a trend oriented trader and dislike trading against the trend. By definition, any bounce off a support or resistance line would entail a move against an existing trend, which is something I avoid, especially in a strong trend. Secondly, in order for the price action to move through a support or resistance line it takes a medium, at the least, and usually a strong push to pierce the line. Inevitably, this strong push creates excess momentum which is carried through for 10 or 15 additional ticks, and those additional ticks are the prize I am seeking to capture. This set up usually results in a very violent and short trade, as the momentum pushes the price upward or downward at a high rate of speed. It is an exciting trade to watch and even more exciting to initiate.

When setting this particular trade up, I generally look for a strong support/resistance line that will intersect an established trend line. As an aside, I tend to prefer to take this trade to the short side as the market tends to move faster when heading downward. This can be attributed to panic selling, or long traders bailing out of short positions as the price action moves against them. In any event, I position my entry three or four points below the support/resistance line and wait for the price to come to me. Needless to say, it is never a good idea to chase the price action and it is rare for me to initiate a market order. I want to enter a trade at a point of my own choosing where I think I have the best chance of profiting.

Once you become accustomed to spotting the set up, you'll find it occurs two to three times daily. The trade is relatively reliable if it occurs in a trending market, and the trend does not necessarily have to be a strong one. On the other hand, I would avoid taking this trade when the market is in a well defined channel. Breakouts or breakdowns out of channel formations are generally unreliable and typically fail. False breakouts from a channel formation look very enticing from the onset, but after moving three or four ticks in your favor they tend to retreat back into the channel. Once in the channel, it is anyone's guess where the price action may go as movement inside the channel is random, at best.

In summary, we have looked at a trade using support/resistance lines. Instead of looking for a bounce off these lines, we have outlined a straight that entails a continuation of a trend through known support/resistance. We have noted that this trade is reliable when used in conjunction with a trending market, further we have cautioned against taking a straight out of very well-established channel.

Trending and Trading Markets - Finding The Correct Indicators For Each

2011-05-20T09:48:00.000-07:00

A trending market is one where prices move strongly in one direction, either up or down. The best way to visualize this price pattern is by drawing a line that follows the slope of the prices. Another hallmark of a trending market is the steady move to new highs and higher lows. Conversely, in a down trending market prices would be making lower lows and lower highs.

Trading markets don't make new highs. There is no discernible persistent move in either direction. Prices tend to ping back and forth near old highs and then fall to prior lows. Sketching this type of price action would reveal a series of peaks and valleys.

Trending markets need lagging indicators. Moving averages (simple, weighted, exponential) are in this category as is the MACD (it also has a leading component, too). These indicators will maintain you in a trend as long as the trend remains intact. Lagging indicators are unsuccessful in a trading market -- moving averages tend to flatten in a sideways market and offer no useful information.

There will always be periods of consolidation in the markets to frustrate traders. The Relative Strength Index (RSI), Stochastics Oscillator, and Williams %R are some of the common indicators found in most charting software. These tools swing between oversold and overbought and are usually bounded by an upper and lower range.

Trading markets can be difficult to trade. Despite the use of oscillators there will be an increased frequency of trading signals, both buys and sells. Many of the signals will be false and whipsaws are very possible.

One of the best ways to harness a trading market is to discover the support and resistance range on the chart. The odds for success can also be increased by taking only the most overbought and oversold signals.

Attempting to participate in a trading market can be very frustrating. The more trading one does the more we find our comfort levels. There is nothing wrong with taking a little trading vacation and waiting for market conditions that mesh your style.

I hope you've found a few ideas that will work for you. Good luck with your trading.

Trading Strategy Design - Pick the Market Type

2011-05-19T10:55:00.000-07:00

In designing a trading strategy, we will start with the big picture and dig deeper into more detailed decisions of the strategy in making decision. In the beginning, we will assess what type of market we want to trade and what kind of trader we want to be. Then, we will end up with how to decide on exits, and how we manage our money and risk by putting stops.

Pick the Market Type

The first decision you have to make is what type of market action you want to trade. Generally, there are three types of markets, they are derived from three distinct chart patterns that appear when there is a shift in market action. Each market type can be characterized by specific price activity. You should make yourselves familiar with the charts to be able to identify different market pattern.

The three market types are as follows.

1) Trending Market: A sustained large increase or decrease in price characterizes a trending market. If you decide to choose the trending market for your strategy. You are designing a trend-following strategy.

2) Volatile Market: A volatile market is characterized by sharp jumps in price. If you decide to choose the volatile market for your strategy. You are designing a volatility expansion strategy.

3) Directionless Market: A directionless market is characterized by smaller, insignificant up and down movements in price, with the general movement sideways. That's why it is usually called Sideways Market. If you decide to choose the directionless market for your strategy. You are designing a support & resistance strategy.

Although the picking of the market type may, on the surface, look like an easy decision. In fact, it is a difficult one because most new traders only think about profits. They simply try to pick the strategy that makes the most money. Unfortunately, focusing on the money is not the right decision.

Whether you are a new trader or an experienced trader, I would suggest you to use either a trend-following strategy or a volatility expansion strategy.

Why do I suggest that? What about the support & resistance strategy?

Either you choose a trending market, with the knowledge that you are going to have to trade through extended periods of drawdown in the directionless market, or you choose a volatility market that will give you extended periods of doing nothing while you wait for the next trade in volatility expansion strategy.

Cycles, Trends and the Pause Formation

2011-05-18T06:50:00.000-07:00

Yesterday I sent out to my free newsletter subscribers a lesson I had written a couple years ago dealing with what I call the PAUSE formation. The reason for this was that a market that I had been sharing future cycle turn dates on had formed the early warning sign for a PAUSE formation and may present an opportunity for a trade. At the very least, it should help those looking to learn more about cycle turns, swings, pivots and other associated phenomena to cycles. The more you understand a tool or indicator the better you can exploit it.

The PAUSE formation is very simple to identify. But what I want to discuss first is what to look for in order to determine a POTENTIAL PAUSE formation. Unless you have some advanced warning, who cares what the formation is after-the-fact?

Let's start from the basics. In dealing with market cycles, it has to be understood that market patterns are the result of the cumulative effect of several cycles. But to make it really simple, let's just call each time frame a single cycle that has its own frequency and magnitude. Yes, this is extremely simplified, but should help those new to cycles altogether.

If you look on a MONTHLY price chart, that being a price chart where each price bar represents a complete month of trading, you are looking at a LONG-TERM view of the market in question. We'll call the market GOLD.

If we look at the MONTHLY chart of GOLD, you can see that prices have just been moving higher each month. So you could say the LONG-TERM cycle is moving up right now. Simple to view, right?

If we look at the WEEKLY chart of GOLD, where each price bar represents a complete week of trading, we can see that each week is making new highs. So let's say the INTERMEDIATE-TERM cycle is moving up also.

On the DAILY chart, where each price bar represents a single day of trading, we can see that price has been pulling back (down) from the recent top high on 1/20/06. A very small pullback, mind you, but the direction is still down. So we could say that the SHORT-TERM cycle is going through a down swing.

Can you visualize this? It really helps if you can.

Now consider that the LONG-TERM cycle has more power than the INTERMEDIATE-TERM cycle. And the INTERMEDIATE-TERM cycle has more power than the SHORT-TERM cycle. And all of these are working and doing their thing at the SAME TIME.

If the LONG-TERM cycle happens to be moving up, and the INTERMEDIATE-TERM cycle is moving up, what chance do you think the SHORT-TERM cycle is going to have when it wants to start down again? Quick answer: Just take a look at your daily chart of Gold and look at the 12/29/05, 1/5/06, 1/18/06 price bars. Each of these made a new daily low and then were quickly overruled by the stronger upward moving cycles. Now we see 1/24/06 making a lower low than 1/23/06. What are the odds it can continue in this direction for several days? It has longer-term cycles working against it.

Now cycles are more complex than this. But hopefully you can get an idea as to what I'm trying to get across. Cycles can support or oppose each other. If you can visualize the monthly chart making new highs, but currently the weekly chart is making a new lower weekly price bar low, what you have is an intermediate-term cycle in its downward swing (cycles swing up and then down and start over again) while the longer-term cycle is still in its up swing. You have opposing powers that will tend to cancel each other out at various points in time. And riding on these is the short-term cycle that as far as the longer-term cycles are concern is just noise. Yet, when the larger cycles are canceling each other out, the 'noise' or short-term cycle will become more visible and you will see nice swings as the market is moving more sideways on the lower time-frame charts.

It is during strong trends either up or down that have a washout effect on short-term cycle turns. As you can see with the daily chart of Gold, the swings are there but start and conclude quickly in order to continue in the strong upward trending direction.

Now that you have a better understanding of cycles, we can now cover the PAUSE formation in a clearer light.

While long-term and intermediate-term cycles help those of us who analyze charts for such cycles to determine the longer-term direction of prices, it is the short-term daily chart and lower-time frames that are used to 'fine-tune' our trade entry. The idea is to keep risk low and catch a new move as early as possible.

With GOLD, for example, we can see the long-term and intermediate-term direction has been up. So the power behind higher prices on the lower time-frame daily prices is strong. This suggests that as we determine where the daily turns are likely to occur using daily cycle turn dates (based on short-term cycles), we are going to want to catch the swing bottoms they produce rather than try to short the swing tops that precede them. As the saying goes, TRADE WITH THE TREND! No wonder this has passed the test of time.

The PAUSE formation is when you have a short-term cycle that is due to oppose the strong longer-term cycles and makes an attempt, only to fail to complete the swing (confirm). A good example is the 1/9/06 price bar in Gold. Note how this price bar made a higher high and then is followed by a price bar that does not move above it. Although the next price bar did not make a higher high, it also did not make a lower low. This is called an INSIDE bar.

The short-term cycle was actually topping and trying to correct (down) at this time. Yet the longer-term cycles were just too strong to allow the lower time-frame cycle to complete its swing with a full confirmation. Confirmation requires that a following price bar make a lower low in comparison to the prior price bar (for swing tops. Bottoms are the opposite). So in the case of the 1/9 new high, had any price bar formed later with a lower low than the price bar prior to it, then the 1/9 high would have confirmed as a swing top (assuming this lower low occurs prior to price eventually exceeding the 1/9 high).

The 1/9 price high turned out to be a PAUSE formation top. As stated earlier, it is an attempt to form a swing that is cut short of confirmation.

At the beginning of this article I stated that such a situation can be anticipated in advance. Can you see how based on what you have learned so far? You start off first expecting the swing based on a cycle turn date (when a cycle is due to turn). In the case of rising prices, you see a new high occur when the cycle is due to turn. The next trading day does not make a higher high, yet it does not make a lower low either (inside bar). This is called a POTENTIAL PAUSE formation. In a strong up trend market, this potential becomes very strong and likely. Since you have resolved not to oppose the longer-term cycles that are moving up, you do not attempt to sell suspected swing tops on the daily chart. And with the potential for a PAUSE top situation, you are even more resolved not to sell. However, the PAUSE now gives you an opportunity to go with the trend on the buy side. How? When price decides not to confirm the swing top but rather 'breakout' above the high (of the pause high bar) that preceded the inside bar, you can use that as an entry signal.

Swing Trading Verses Momentum Trading

2011-05-17T09:28:00.000-07:00

Generally, periods of trending market last a relatively short time in relation to longer sideways market. But rather than stand aside, many traders think they are seeing trends where the market are not trending.

In trending market, fast-moving stock's prices attract attention and awaken great excitement. Many novice traders fever with these hot plays. The financial press makes these more danger with frantic reporting of big gainers and losers. But gaining profits by momentum trading requires great skill and discipline.

Typically, price seeks equilibrium. When unsettling events destabilize a market, counter-trend force emerges quickly to put it to a stable state. This inevitable backward reaction follows each forward impulse. Novice traders fail to consider this action-reaction cycle when they enter momentum positions. They blindly execute trades that rely on a common but dangerous trending-following strategy, then trend reversals appear suddenly.

Novice traders enter small price swings on the false assumption that the action represents a new breakout for a major trend. Although these errors may not incur large losses, they damage equity and confidence at the same time.

Some traders, in the other hand, may appreciate the market's complexity and realize that trading mastery requires many diverse skills. As price usually cycles through regular phases, strategy needs to adapt quickly to capitalize on the current crowd. So, swing trading, that execute right near support or resistance, is a powerful alternative. This classic trading style requires more precise planning than momentum. However, it allows measurable risk and highly consistent rewards.

Swing traders seek to exploit direct price thrusts as they enter positions at support or resistance. They analyze chart pattern characteristics to indicate short-term market inefficiencies. The swing trading strategy is a time frame independent methodology. Some traders are able to apply this strategy by never holding a position overnight.

Nowadays, the revolution in high-speed trade execution opens swing strategies that last for minutes instead of days. Dependable price patterns appear on charts in all time frames, swing setups offer the short-term charts the same opportunities that appear on longer-term charts.

Swing trading provides a natural framework to identify changing conditions and apply new methods to exploit them. However, as its core, swing trading is not the opposite of momentum trading. During the times that strong price movement characterizes a market, disciplined momentum strategy becomes the preferred swing trade. In this way, modern swing traders can apply the principles of risk management and price boundaries and use momentum's greed to their advantage.

How to Trade the Parabolic SAR

2011-05-16T06:56:00.000-07:00

It seems I am always writing about Welles Wilder and his 1978 classic, New Concepts in Technical Trading Systems, and this article will highlight one of his most interesting indicators from the book for use in trending markets. There will be those who argue that the Parabolic SAR has other uses, but I have found it less than effective in non-trending markets and a champ in trending markets. Traders who carve out small chunks of profit and then quickly exit are called scalpers, and I am a scalper. For a scalper like me avoiding the inevitable retracement in a trend is essential and difficult to predict.

The Parabolic SAR is usually depicted on a trading chart by a series of dots moving in relation to the asset price activity on the chart. To the best of my knowledge, it is the only indicator that is generally represented in this manner. In a nutshell, when the dot series of the Parabolic SAR (incidentally the SAR stands for "stop and reverse") is below the price action, this is considered a bullish signal. As you might guess, when the pattern is riding above the price action this is considered a bearish signal. If nothing else, the Parabolic SAR keeps a trader well aware of the prevailing momentum in the market. And many people use the indicator to enter trades, both short and long. While the system works well enough, it is my belief that there are better indicators for this purpose.

Drops, or breakdowns in the market generally occur at a pace three times quicker than upward movement, or breakouts. Breakdowns tend to be very violent and frenetic events, while most breakouts or up trends tend to be more gradual and calculated. This means that a move to the upside is typified by a period of rising prices, then a bit of a retracement, and then resumption of the move to the upside. As a scalper, I want to be in the market when the price action is rising to the upside and would like to avoid the inevitable retracements that occur. Of course, this is much easier said than done because retracements do not generally announce themselves or occur in predictable patterns. On a day when the market is moving to the upside, and it appears that will be the trend for the day, I will immediately add the Parabolic SAR to my chart because it can often tip me off to when those retracements may occur.

Now I bet you are wondering, "how does that work?"

For the sake of example let's assume the market is in an uptrend, so the parabolic SAR indicator would be below the asset price action. As a trader, I would be monitoring the distance maintained between the Parabolic SAR and the asset price. As long as the price stays above the indicator I am comfortable and happy watching the price increase. Inevitably, the gap between the price and the Parabolic SAR begins to narrow and at some point the indicator will cross through the asset price. At that point, I exit the trade and bank my gains. If you have read any of my other articles you will know that I will begin looking for a Fibonacci ambush trade to time my reentry into the market. So in a trending market, which is really the only market I like to trade, I have a very valuable tool in the Parabolic SAR for exiting a trade at the beginning of a retracement.

Of course, many traders like to let their trades run and will hold on to their contracts through the retracement. There is nothing wrong with this, but my scalping mentality tells me to trade with the trend and exit on retracements. If I have accumulated 2 or 3 points on the ES contract for example, I am happy to take my profits as my mission on that trade has been accomplished.

As you can see, I use the Parabolic SAR as a tool in a trending markets to identify retracements. When the Parabolic SAR crosses through the price action (which would indicate a possible temporary move to the downside) I exit and bank my profits. For the record, you can use the same system on short trades, and it works, but the action can be much faster and more erratic when you are working in a downtrend. Depending upon the nature of the downtrend, I may or may not use the Parabolic SAR to start retracements. I wish I could tell you what determines whether or not I use the indicator in a downtrend, but it is more a matter of how I feel the downtrend is progressing.

So give the Parabolic SAR a try and I think you will be pleasantly surprised with the results. There are many trading systems based solely on the Parabolic SAR and they may be worth a look, too. We all trade differently, and certain indicators resonate to a greater degree with different traders.

How to Make Money With Forex Swing Trading

2011-05-15T07:11:00.000-07:00

Swing trading became popular in the 1990s as the huge equities bubble formed, allowing massive profits to be made from one of the most strongly trending markets in modern history. Traders simply bought the strongest stocks or indices every time they pulled back a bit, and rode the subsequent surge to new highs. It was a heady time.

When the markets are in the right kind of mood, swing trading is the most enjoyable way to harvest money from the pits. But the markets aren't always in a giving mood - swing trading is only a profitable tactic when your trading vehicle is moving strongly up or down. Attempting to catch big moves (which is the main goal of swing trading) during a shifting or range bound market is a painful way to whittle down the size of your trading account.

In today's market, forex swing trading is one of the most reliable ways to make money. Forex trading is not without risk, but unlike stocks, when a currency establishes a trend, it is typically clear to the human eye (by simply reviewing a standard fx chart) AND currency trends often last for weeks, months, or even years. It's difficult to over state just how valuable that is, particularly to the trader who is NOT interested in hanging around in front of his or her computer all day long. Or all night long, in the case of currency trading.

This is not to say that currencies are ALWAYS trending. They each have periods of range trading, just like any other vehicle; the successful forex swing trader will need to be able to spot the difference between trending and range bound markets. That is the very first step: nothing else matters until you can be comfortable you are looking at a trending market. How can we do that? There are two general approaches - the first way is pretty organic, the other way is indicator based.

The easiest way - the organic way - to determine a trend is to simply look at a chart and see if you can easily draw a diagonal line from one corner to the other and have it mostly match the price action. That's not difficult, is it? And since there are only a handful of currencies you will likely be looking to for swing trade opportunities, you can do this without investing hours at a stretch.
The other way the swing trader can determine a currency trend is to pick one of many indicators aimed specifically at filtering trending markets from ranging markets.

The ADX, the Aroon indicator, fractal pivot points, and others - any of these indicators can make identifying trending/ranging behavior simpler. There are literally hundreds of indicators and variations on indicators traders use to make this call (trending vs. ranging); some are complex to the point of being useless, and others are very elegant in their simplicity. I prefer the simpler options, but you owe it to yourself to check out a number of them to see what works for you and your overall trading plan.

Trading in Forex Trends

2011-05-14T06:54:00.000-07:00

If you are looking at trading in the forex, your primary goal is to make a steady and sound profit. Many traders seem to choose trend trading, finding trending patterns and jumping on the trend to profit.

The charting tool that has gotten very accepted recently is candlestick charting. Candlestick charts are able to put a great deal of information in a very small space. The trick is seeing the trend in progress rather than when it is all completed. Trends are easy to see in hindsight, that's for sure and for certain.

Some people draw a line above the low points of the candlestick shadows while prices are rising you will see the up-trending slope. In the same way you can draw a line above the high points of the shadows during a falling trend and you can see the downward slope.

Sideways trends are when prices tend to channel closely and not break out. When a side ways trend is happening you will see lines that are almost parallel and horizontal.

When you have a sideways trend with horizontal lines you may expect a breakout to occur. Calm trends don't seem to last to long. One approach that traders use is to set an order to execute when the trend breaks either over or below the current trend.

Still some other traders look at sideways forex trends to indicate a change in the main movement of that currencies rate. As an example the trend pattern may follow consistent upward trend. This may indicate a resistance against the rate moving any higher. A person might reason that the upper line is a resistance point and a decline is going to follow.

Because the forex is a very hazardous beast, always do extensive research in creating your system. With forex trading there are a plethora of tools available to do back testing, use them. Also do real time testing with a demo account prior to putting real money into using your system.

Trend lines can be an tremendously accurate and reliable way to analyze the market and trade in a profit. That is what has been done for decades, maybe even centuries. It was only recent times that we have the mechanized methods to examine the market.

Patience is a virtue when trading the forex trending market. It is alluring to jump into the market before your criteria has been fully met. This is very unsafe. I have been there, you could reason that I am not making any money not being in the market, but, maybe it's better to say, "I'm not losing any money sitting on the sidelines."

Trending Versus Counter Trending

2011-05-13T01:11:00.000-07:00

We believe a trader is better off recognizing the environment she is in by seeing the overall pattern of highs and lows and gauging the momentum before making the decision to go with a trending strategy in which once she is in the trade, she may use a lagging indicator and plan to allow the trend to develop. Or a trader can decide to employ a counter trend strategy in which he uses support and resistance, individual candle behavior, and/or a leading indicator to get in and out of trades faster.

A very important difference between a trending market and a counter-trend market is that in the first one the higher time frames will dictate price movement and direction, whereas in a counter trend environment the lower stage frame charts can dictate direction. This means that in a trending market you do not want to go against the trend on the next higher time frame. In a countertrend market you are taking signals on the lower time frames routinely regardless of the previous direction on the higher time frames.

The importance of trending and the counter trends is because to be a complete trader, you must do both. You can even choose what to master trending or counter trends, it's not necessary to do both.

The easiest way to define whether you are in a trending or a counter trending market is to define the trends on the different time frames and see if they are in agreement, which would mean a trending market, or are conflicting, which would mean a counter trend market.

Trending and Counter Trending Behavior

2011-05-12T01:08:00.000-07:00

A trending market is one in which the directional bias is obvious and can be seen on the chart by a pattern of highs, lows, and closes moving in the same direction. A counter trending market is one in which there is no obvious direction other than sideways.

Trending markets call for making quick decisions upon entering a trade but showing more patience once one is in the market, whereas counter trending markets give the trader more time in taking a trade but require less time in the trade and speed in exiting. Trending markets by definition are impulsive and move easily in one direction, whereas counter trend markets are reactive by nature and exhibit indecisive price action.

We can define a trend trade as a position taken in the same direction as the overall pattern of highs, lows, and closing prices. A counter trend trade is one in which the trader is going against, or fading, the overall direction of the market in anticipation of a correction or a reversal or a trade in which the objective is to take advantage of a sideways market by selling near the top of the current price range and buying near the bottom.

Beginning traders often are attracted to counter trend trading because of the perceived level of risk. To someone with a small account, buying a market at a support level after a sharp price drop and then placing a tight stop-loss order can seem like a better choice than waiting for a market to correct or retrace and then turn before entering the trade and then placing a stop-loss order some distance away, below the last swing high.

In the long run, trend traders will be rewarded more because they will be taking advantage of the market's tendency to trend. Counter trend trading strategies can be successful but require more diligence and create higher transaction costs because of the higher frequency of trading.

To enter any trade, whether in a trending or a counter trending environment, we generally prefer to use a signal generated by a leading indicator coupled with a short-term trend line break. In a counter trending environment, though, we can speed up our entry process by using the closing price beyond a doji or inside candles on existing support or resistance as the trigger. In counter trending markets we want to get in our position as close to the top or bottom of the range as we can.

In a trending environment, in contrast, we want the market to give us more of an indication that it is turning rather than just a pause in support or resistance. In a strong trending market it is best to pass on counter trending signals unless you have the time and skill to trade on a lower time frame.

Why Do We Trade Against the Trend?

2011-05-11T07:04:00.000-07:00

You don't see much written about trend trading these days. Most of the literature is devoted to intricate new oscillators and fancy setups using specialized math formulas. No, the trending market seems to be pushed to the back of the trader's arsenal of tricks in favor of more complex techniques. That seems an odd dichotomy to me, as nothing I know about trading is more effective than trading in the same direction the market is moving. It only makes sense to follow the momentum of the market. As an there used to be a time when every trader drew in a trend line during a market move and traded according to deviations along that line. It was standard stuff back then. Incidentally, the system still works just fine, but people seem to have opted for different trading methodology.

Most trends form a channel of upward movement typified by higher highs and higher lows. Trends do not form a straight line upward, as there are always retracements within the t and that is him in him channel before the trend resumes its upward movement. There are also trends that move to the downside, but I would point out that downward trends move three times as fast as upward trends. Upward trends tend to be more gradual in nature, and downward trends tend to be more violent and fast-moving. Obviously, it is much easier to trade in upward trend because of the more benevolent nature of the upward movement. Just the same, all trend traders must realize that there will be retracements (or temporary pullbacks) throughout the course of any trending market.

But here is the phenomenon that baffles me; in a trending market is wise to always trade in the direction of the trend. The only time I would consider trading against a trending market is if I thought the trend had reached a top, or a peak. However, peaks are very difficult to identify and occur infrequently so they are generally outside the scope of my trading thought. But time and time again I see traders attempt to trade against the trend. There are many reasons for this; sometimes some very enticing setups will occur against the trend. A trader with any experience will realize that no matter how enticing a up against the trend may appear, it is generally a dead end. Once the market establishes direction, it generally maintains that direction for a period of time. During the period of time the market has a well-established direction is best to take trades in the direction of the trend. While this may sound elementary, you would be surprised at the thousands of traders who tried to buck the trend; and they usually end up with a similar result, a losing trade.

I learned a trade many years ago, some would say I learned from the old-timers, and they would preach ad nausea about the dangers of trading against the trend. To be sure, no beginning trader dared do it for fear of ridicule, or worse. The old adage "the trend is your friend" is a long-standing same that did not originate in recent times. I can remember hearing this saying as a beginning trader. As a matter of fact, it was hammered into my consciousness. (Sometimes against my will, or at least until I was sick of hearing the phrase).

So this brings me to the thesis of this short article. Why has one of the most effective trading techniques fallen by the wayside? Now I am not saying that all traders trade against the trend, as there are a great number of traders who respect trading with the trend. But I see a tremendous number of trading techniques that disregard the old adage and try to pluck trades from the retracements during a trending market. It makes no sense to me, as the retracements are generally short-lived and very unpredictable and length.

In my trading I aim to keep my countertrend trades at less than 10% of my total trading volume. This means, of course, that I am trading with the trend 90% of the time. As you can see, I have a strong bias toward trading in the same direction the market is moving. Does that make sense? If the market is moving one way why not roll with it? There is really no need to buck the trend.

American Women Entrepreneurs - The Hottest Trending Market

2011-05-10T06:50:00.000-07:00

For anyone who still thinks American women in business are just craft makers, listen up.

Women-owned small businesses in the U.S. are not only growing in numbers, they are playing a large role in the economic recovery, according to a report conducted in October, 2009, by the nonprofit Center for Women's Business Research. The studied market segment represents nearly $3 trillion and employs 23 million people, making women owned businesses the world's fifth largest gross domestic product!

This has happened in spite of special challenges for these women, stemming in large part from a media that portrays them as less competent in business, with inferior management and technical skills and a range of expertise that is limited to such areas as fashion, food and family.

The fact is almost half of business in America is at least 50% owned by women. Of these firms, the ones that have over $1 million in revenues have grown nearly twice as fast as other, similarly sized firms in the U.S. from 1997-2000.

Women are finally outnumbering men in management level positions, too. According to the Bureau of Labor's statistics, as of 2003 women represent 50.6% of the 48 million employees in higher paying, white collar, managerial, professional and related occupations.

These new statistics will make a difference not only to media generated imaging, hopefully, but certainly to businesses that sell services and products to other businesses. They would do well to target this increasingly important demographic profile: women in business are here in equal numbers and these women are moving and shaking!

Oprah Winfrey is a wonderful source of inspiration to millions, having come from very humble beginnings. Born into poverty in rural Mississippi, Winfrey suffered sexual abuse which began at 9 years of age and also became pregnant at 14. Her son died in infancy. After moving to live with her father in Tennessee, she went through a tumultuous period. When she was awarded a scholarship by Tennessee State University, however, she took advantage of the opportunity and studied media and journalism.

At the age of 19, she became the first black African American woman television news anchor to work in Nashville on WTVF-TV. But Oprah only began to enjoy herself when she switched over to hosting talk shows. Her manner was warm and appealing; she thrived in the tabloid talk show genre and took a Chicago show from third place rating to first. Around this time, Ms Winfrey had the entrepreneurial spunk to start her own production company and become internationally syndicated. From there, she has come to be, arguably, one of the most influential women on the planet, as well as one of the richest, having a net worth of $2,300 million.

Her natural charm and openness about her life's challenges has won loyalty from millions with her "keeping it real" persona. I once met her in Chicago at her TV studio, and she exuded a charisma that was palpable. When she came onto the set before the show, I could actually feel her come into the room.

Cruisers Led the Entire Social Media Trend - Marketers Followed

2011-05-09T06:28:00.000-07:00

Cruisers are social animals by nature. They are joiners. For the most part, they belong to groups and organizations, and seek to meet new friends when they cruise. "Picture the best friend you've never met." That is the promise inherent in a cruise vacation...yet at the turn of the century - the cruise lines failed to understand it, or lead with it.

Pre-Y2K

In 1999, I met with a friend from the airline industry who had recently become the President of a very large cruise line, who informed me over the course of lunch that he had just been on his first cruise. He went on to explain that he felt the need to have the ship's communications department facilitate ship-to-shore communications capability just for him, so he could check his e-mail while at sea. I told him then and there that his company (and all other cruise lines) would be retrofitting their ships to facilitate the same connections for their guests that he demanded for himself - in every cabin. He told me it would never happen - as the costs were too prohibitive. I explained that his prospect's communication needs were no less important than his own (from their perspective), and that he had just articulated a major cruise resistance factor that needed to be overcome. What he perceived to be a "cost," was actually a huge ("wish you were here") marketing opportunity, one that self-liquidates through use fees. The industry has subsequently proven me right, as every major vessel now offers internet capabilities to its guests.

Y2K And Beyond

B.I. (before Internet), booking a cruise necessitated the inclusion of a commissioned travel agent in the education/facilitation process (for an 18% fee). At the point where the Internet had achieved a 50% rate of adoption in the US, the developing cruise-specific social communities were facilitating Internet-enabled-word-of-mouth to such an extent that every question any prospect might have to achieve a comfort level sufficient to purchase a cruise, was easily answered by the community. Direct booking (by phone) was being facilitated by the conversations that were occurring online, saving the Contemporary cruise brands $180 per booking on average.

2002 - A Year Of Transition

If you're reading this, you may well have been among the early adopters of online travel research and booking, for whom the Internet replaced the travel agent for all of your research and booking needs. A mindset developed among this cohort that they would no longer rely on travel agents. One problem. Cruises are a highly complex purchase, and fear of making the wrong decision was causing booking paralysis among this contingent. As a result, these would-be-cruisers were spending weeks and months on message boards, hoping to attain the knowledge and comfort level sufficient to book their first cruise. While the industry's reseller channel was under direct attack, the cruise lines had yet to make the online tools available to facilitate the transaction in this new paradigm, for fear they would be perceived as cannibalizing their those responsible for booking 95% of their business. While an industry struggled to maintain the status quo, the online cruise community blew right past them.

Cruises In Common

While most were conducting their research as a couple, these interactions led prospects to seek a connection with other couples who were already booked on the same cruise they were contemplating. This organic trend was witnessed in real time, in its infancy, by this author. The ramifications were tremendous, and would change an entire industry. The disintermediation of the reseller channel was occurring before my eyes, in a most compelling way. Not only were cruisers providing advice, they were actually involved in selling the product - for free.

"Join Us On Our Cruise!"

What cruise line marketers failed to understand is that people were at least as interested (if not more interested) in the types of people who would be on their cruise as they were in the brand, ship or itinerary. Marketers had no desire to help prospective cruisers answer that question in 2002, as their budgets and mindsets were all geared to "broadcast mode." While marketers were proclaiming "We're prefect for everyone!" - potential cruisers weren't buying it, as evidenced by the fact that 90-plus% of Americans had yet to cruise - this despite a huge percentage who said they'd like to.

FriendShip Facilitation

As was hammered home in my subsequent e-marketing consulting for the aforementioned cruise line President, "You're in the friendship facilitation business, and your marketing department doesn't know it!" While I was spending most days reading the thousands of message threads on sites like Cruisecritic.com, learning wants and desires, fears, resistance factors and all the rest, marketers in the industry scarcely knew of this community's existence - and certainly did not see the powerful future of Social Media that I foresaw - as it exists today.

Only by sheer tenacity was I able to push through a first-of-its-kind program, whereby a Fortune 500 company embraced an online community, honoring their value to the company. As couples with a cruise in common formed their own vertical affinity groups, we implemented a program to acknowledge and reward their online interactions once they boarded the ship for their cruise. A special party for each group was planned on every significant sailing. The online community was delighted to know that one brand was listening to their wants and desires (knew them by their screen names) and rewarded their online efforts in the real world - enhancing their vacation experience. As they returned to their cabins in the aftermath of these parties, they'd report back to their other onshore cruise friends in the broader Cruise Critic community - from the ship: "Here's a picture of our group with the Captain!" Powerful stuff!

Seeing The Opportunities

Here we are all these years later, and corporate leaders and marketing departments are all abuzz about how to catch-up with this Social Media Tsunami and leverage it to their advantage. Here's a little tip. It's an art, not a science. Getting it wrong with heavy-handed offensive tactics can destroy your brand's credibility among existing communities. Sensitivity is at least as important as creativity where friendship facilitation is concerned. What business are you in? What business could you be in? Are your marketers geared toward broadcasting - or are they listening, and then responding to delight your prospects in surprising new ways?

Customer Experience & Service

If your customer service department isn't actively monitoring message boards where discussion of your product or service is concerned, you're on the road to extinction. In the new world, customer service IS marketing, and for the most part, brand advertising is irrelevant. Community members who have legitimate complaints about products or services, and voice them online, should have an expectation of results. When you take steps to fix legitimate problems voiced within these communities, your brand's critics can become your most ardent champions - and it can happen in real-time - to the boisterous applause of the broader community.

The Pitch

That said, there are one-hundred wrong ways, and one best way, to handle these matters. It's not likely you have this skill set in-house. Sending in covert agents to infiltrate communities - or recruiting brand champions from within existing communities - will result in your brand's public crucifixion (as occurred with my former cruise client when their marketers recently attempted this ploy). Treading lightly into these waters - with customer experience and customer service as your primary missions - will lead to brand loyalty, not as a direct result, but as an indirect byproduct of applied respect and common sense.

Small Business Marketing and the US Census - Economic Trends, Market Research and More

2011-05-08T07:33:00.000-07:00

What would you say if I told you there were an online tool that could provide detailed information about the size of your market including trends in your industry and other important information concerning the economy as a whole?

What if I told you that this tool could help take the hit-and-miss out of small business marketing?

And what if I told you it was free?

The US Census site is all that and more. That's why it's such an essential data destination for market researchers, entrepreneurs, government agencies and anyone who needs accurate information about social and economic trends in the US. The economic portion of the site offers a wide variety of reports-usually in the form of a downloadable.pdf document-covering topics ranging from basic economic indicators to employment statistics and more.

There is, of course, one major drawback to US census data, and that's how often it's collected. There are areas of the website's economic data still based on the 2002 Economic Census, and even the economic indicators updated on a monthly basis do so based on information obtained two months previous.

Even so, there are numerous ways that US Census economic data can be essential to making informed small business marketing decisions, and having a sense of the scope of resources available will get you started in putting that data to work for you.

Does the number of households with children in your county, region or state make a difference in terms of the size of your potential market? How about the number of retirees, or individuals representing a certain minority group? If so, you'll want to check out the People & Households section of the website which also contains important information concerning household incomes.

These numbers could help to influence how much of your marketing budget you dedicate to reaching certain sectors of your target demographic, and where, geographically, you choose to concentrate your advertising dollars. It may also help you determine baselines for products and pricing.

If your target market is tied to a certain business or industry-the housing market, for example, or the entertainment industry-you'll want to explore the Business & Industry section of the US Census website. This is where you'll find general economic indicators for major areas of the economy, as well as more specific information through the North American Industry Classification System (NAICS.) This type of industry-specific info is also good for surveying exactly how your own business is doing relative to your industry as whole.

There are a number of different ways to use the information available through the Business & Industry section. If you're wondering, for example, what types of online businesses and e-commerce websites are making the most money-and what areas of online sales appear to be growing the quickest-you might go to the E-Stats section. If your market includes small business owners, you might gain some useful information from the Survey of Business Owners. And, if the local economy is important to the growth and development of your business, the section marked County Business Patterns, under the heading of Economic Indicators, is a great place to start.

Garment Accessory Quality and Features with Current Fashion Trends Market

2011-05-07T08:12:00.000-07:00

Garment Accessory and fashion

Garments accessory plays vital role in current fashion trends. Fashion means something new and creative that people like and wish to demand. It is very necessary to find out new and innovative quality making techniques for garment accessories. There are varieties of garment accessories available in the market such as cords, webbings, tapes, drawcords, threads and belts etc.

Garment Accessory as per fashion trends

Garment accessory or narrow farbrics have become an indispensable part of new fashion trends. It offers extra beauty to the product provided it should be of fine quality with innovative designs. Traditional or small scale supplier manufacturer of garment accessory don't offer innovative solutions as they can't afford the cost of implantation of new machines and new methods of production.

Garments industry is very competitive and changing industry as per fashion and new demand. In order to increase demand of garment fabrics and products, garments accessory needs to be more beautiful and attractive. With the advent of market demand it is required some changes like in production techniques, color, size, pattern, designs and durability of the products.

Garment industry changing aspects

High level of security is required in case of belts. It is therefore required to use best quality raw material with new and innovative production techniques to provide utmost comfort with higher durability to these life safety belts.

Moreover as per fashion requirements quality printed fabrics are demanded more so new technique that can provide unique printing and designs on the belts. These steps are required to give a new push to fashion industry.

Raw material quality is also affects fashion demand and quality demand. If you are Garment Accessory Manufacturer you need to use high quality of material as per demand and current fashion needs.

Who can offer best services?

Garment Accessory India is a leading manufacturer of Garment Accessory and Narrow Fabrics products. We are the largest supplier and exporter of garment accessories. We offer maximum satisfaction to our customer by providing them desired quality garment accessories. Our Garment Accessories are based on latest fashion trends and manufactured with innovative techniques of production. We provide complete customization as per individual need and requirements.

How Fads, Trends, Marketing and Innovation Can All Effect Your Business Profits

2011-05-06T07:19:00.000-07:00

Perhaps the most effective way to look for business ideas and opportunities is to study trends. Be on the look out for emerging new trends where you can get in early and reap the profits before everyone else does.

However it is important to understand the difference between a fad and a trend.

A fad is like a wave washing up on shore. A trend is like the tide. Remember the hype of Ninja Turtle toys? They were a fad, and the market was flooded for a short time, with all sorts of Ninja Turtle merchandise - T shirts, watches, confectionery, stationery and even Ninja Turtle ice cream... it was all available.

Ninja Turtles were a passing fad. Agreed, you can make a quick buck out of fads. But, you can also get your fingers badly burnt. This is because; fads can be here today and gone tomorrow. Getting left with unsold stock can wipe out all the profit you have made - very quickly.

Compare this to the Barbie Doll. She is a trend. The Barbie concept has been developing steadily for decades. The doll hasn't got any older mind you. Barbie has moved with the times to reflect the changing market. Barbie is a trend.

Forget fads, unless you are very quick footed. Trends are usually a safer bet in business.

Another tip is to focus on marketing and innovation to increase your business sales and profits. Marketing is everything you do to promote your business; from start-up, to the point where customers buy your products or services, and buy from you again and again.

Marketing is what makes a business tick.

The real purpose of any business is to bring in a customer. And, there are really only two ways to do it - through marketing, or through innovation. If you really narrow it down - marketing and innovation should be the only two functions of a business. So therefore, everything else is an expense.

Good marketing can save you money and make you money. Innovation can provide a competitive edge that can set a business apart from every other business in town. Combine the two, and you have a power formula for business success.

Stochastics is the Best Indicator For a Non Trending Market

2011-05-05T08:38:00.000-07:00

New traders often ask how many indicators do you suggest using at one time? You don't need to fall victim to analysis paralysis. You should master only these two oscillators the Stochastics and the MACD (Moving Average Convergence Divergence).

Why I say these two indicators are the best for you. Let me explain. Trending conditions in the market exist not more than 30-40% of the time. Rest of the time, the market is range bound or what you call consolidating. After a nice trending move, the market will move in a consolidation phase.

In choppy range bound market conditions, Stochastics is your best friend. And in a trending market conditions Moving Average Convergence Divergence (MACD) will give you solid trading signals.

Now, the myth that MACD is the best indicator out there may not be true. The reason being market conditions change and the people's perception on an indicator's given value. There is no holy grail in trading. Under certain market conditions, Stochastics maybe more useful as compared to MACD.

Stochastics is used to determine whether the market is overbought or oversold. The market is overbought when it reaches the resistance and it is oversold when it reaches the support. So when you are trading a range, stochastics is the best indicator to tell you when it is overbought or oversold. It is also called a Momentum Indicator!

Now a market is oversold when the prices have declined too far too soon. What this means is that the market is ripe for a bounce. In the same way, a market is overbought when it advances too far too soon. What this means is that it is ripe for a downward correction.

Stochastics used a mathematical formula that sows the location of the current close as compared to the high/low of the range over a certain period of time. Closing prices near the top of the range show that buying pressure and closing price near the bottom of the range show selling pressure.

Stochastics indicator has got two lines known as %K and %D. Both these lines are plotted on the horizontal axis for a given time period. The vertical axis is plotted on a scale from 0% to 100%.

The general rule in trading with the Stochastics is that when the reading is above 80%, it means that the market is overbought and is ripe for a downward correction. Similarly when the reading is below 20%, it means that the market is oversold and is going to bounce down soon!

A Definition of Ranging and Trending Markets

2011-05-04T07:23:00.000-07:00

How can I tell if the market is Trending or Ranging?

In general, there are two basic types of market conditions. A ranging market or a trending market, as defined by the type of price movements taking place over a certain period of time.

The importance of understanding the basic differences between the two cannot be overstated, this is especially true if you're using an expert advisor (EA or Forex robot). Being able to determine whether you are in a ranging or a trending market may literally be the difference between your success or failure in trading.

Typically, a trading strategy is designed to work within one type of market condition. The opposite market will provide false signals, as such, it is very important to tell when market conditions have changed so that trading strategies may be modified as well. As a side note, some of the best Forex robots can detect and adjust to changing market conditions automatically. That is something you should look for when comparing Forex robots.

Ranging

When a market is 'Ranging,' it is simply moving up and down within support and resistance levels without moving above the highs or below the lows. How much the price can move within a 'range' depends on differing factors If, however, the range of price fluctuation is very minor, most traders would consider that to be 'chop' where the market is just moving sideways with very little activity upwards or downwards. Some professional traders will take advantage of a ranging market, buying or selling again and again during these support and resistance patterns. If you're using an automated Forex robot, make sure it has the ability to detect when market conditions change and the market is no longer ranging.

Trending

Trending Markets look very much the same as Ranging Markets but with an obvious up or down direction. A trending market is not absent fluctuations in price. In fact, it may even have small reversals. It will, however, correct its course and continue in its original upward or downward direction. That is, of course, until that trend is over.

'The trend is your friend!' Chances are you've heard that little adage before. That really is sage advice. Many investors have had tremendous success by learning to spot a new trend and get on for the ride. As for Forex robots or expert advisors, some of the better ones have algorithms designed to determine whether the market is trending or ranging in order to adjust its buying and selling decisions. This can be a great way for inexperienced traders to get started with trading as these robots can be based on years of profitable and advanced strategies. For those that are new to trading, some of the best Forex robots are designed to be simple to set up and easy to operate. In fact, many will even place trades on your behalf, automatically.

Ranging or trending conditions can be found in just about any time-frame market whether you're looking at yearly, monthly, daily, or even minute charts.

As with any new business venture or idea, it is important to understand the basics of investing in the markets and your own risk tolerances before jumping in over your head.