Ask Colin

How do you trade a fast-moving trend where there are no obvious troughs to use to read the trend and set stops?

I have found the three most useful techniques are to sell when:

1. A short-term trend line is broken. Draw it through the most recent lows of the bars.

2. Sell on the emergence of one of the common short-term reversal signals or simply using short tern trend analysis.

3. However, my own favourite is to use Parabolic SAR.

I covered this is some detail in my article in Shares August 2000, which is on my subscription web site.

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