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One of the most important rules of trading is to trade with the trend.  The 3 indicators below are very useful for determining the major or primary trend and keeping you from getting "whipsawed" out of your positions.  A Primary Trend reversal will occur when the following 3 conditions are all met:

1)  A DMI cross occurs on the Directional indicator (green line = +DI / red line = -DI)
2)  Price crosses the mid Bollinger Band (20 period ema)
3)  An AROON cross occurs.

Go long or stay long when the primary trend is up, and short or stay in cash when the primary trend is down. ~Myst~

Check Your Stock for it's Primary Trend and the updated Primary Trend Charts for the DOW and SPX500 on MystWerldJoin Now!

NASD Daily Primary Trend 7-31-06
 
(Example - Weekly chart)
 Bearish

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