How we classify trends….

There are many ways to classify trends as to types or the sizes of trends.  At Wyckoff SMI we use four classifications for simplicity.  The intraday, the short term, the intermediate, and the long term major trends.  This is not a precise or mathematically absolute classification and we are not interested in what you call a trend.  But we are extremely interested in your understanding of it.  What is extremely important is your understanding of the supply and demand relationships as the trend develops.  The intraday trends are caused by very small fluctuations, those fluctuations occurring within a day, and there may be several of these within one day.  Intraday trends are usually a day or two in duration.  Essentially a person must have an intraday chart to analyze these intraday trends.  Our software does just that by offering a 5-minute intraday line chart on all symbols.  With that chart is also a corresponding 5-minute Optimism-Pessimism line chart, to show the up and down waves of volume.  It essentially requires a tape readers operating setup and technique.  Minor trends are usually made up of three or four more intraday trends, and are moves up to approximately 10% of the price of the stock.  Usually they last for a couple of days to a couple of weeks.
The intermediate trends which are made up of three or more minor trends and are movements around 15-20% of the price of the stock.  They usually run for a couple of weeks to a couple of months.
A major trend, or long term trend, is made up of three or more intermediate term trends, and is a movement of over 25% of the price of the stock.  Usually major trends will last for several months or perhaps much longer.

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