Two Types of UptrendsSony Group (6758) - Weekly Chart
There are two types of uptrends within an overall upward trend.
This statement might sound confusing at first.
What I mean is that there are "easy-to-understand" uptrends and "difficult" uptrends.
The chart shows two blue circles.
Which one represents an easy-to-understand chart, and which one represents a difficult chart?
Opinions might differ, but I feel the chart on the left is easy to understand, while the one on the right is more difficult.
The reason is that on the left, the pullback buying (buying on dips) continues, and there are no clear exit points.
On the other hand, the right side ultimately trends upward, but the trend doesn't sustain, making it hard to hold a position.
So, how should we deal with such situations?
Since this is a weekly chart, one option is to monitor it with a swing trading approach using the daily chart.
However, when faced with a difficult chart, you also have the option of walking away from that stock instead of forcing a strategy.
Focusing on finding easy-to-read charts and trading only in straightforward situations can often lead to better results.
Keep in mind that this is one way to think about trading.
