FAZ

FAZ Daily Trend Model

I was asked about FAZ in a Comment under the previous post.  Above is the FAZ Daily Trend Model which is saying a couple of things to me.  First, that the trend is down and has been down since a February 16, 2010 Sell Signal at 19.74.  That's a 20% gain in about three weeks and  if you can be objective, shed the bear-market-pending mind set, it's is a damn good trade.  

Second, that the Vortex Indicator is reaching extremely oversold levels, suggesting some kind of convergence of the two Vortex trend lines ahead.

Back to the mind-set thing, I'm watching the 240 minute model here, hoping to get a head start on the next trend signal.  It's really not an Armageddon play, its simply waiting for a fresh trend signal to initiate a trade, rather then jump into a trend mid-stream.  That is a personal trading preference and not necessarily the right or best course of action.  

I welcome other comments on this issue, whether it is best to wait for fresh signals, or to jump in any trend at any time, which is probably more consistent with the principle of trend following.

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