In general most pattern cycle trading usually occurs within key time intersections. Understanding the Stock Market Mechanics is becoming harder, although technology is helping somewhat.
Price discovery will then be free to test these zones which will ultimately hold or in the worst case fail. It has been seen for many years that classic swing trading strategies always depend on barriers such as these to reverse the price. The most common trend mechanisms also show a very fortunate side effect for many sleeping traders as the price often finds itself revisiting the original levels and also permit low risk entry. Many of the pattern cycles seen within the market place recognize the differences between the bull and bear markets.
You will find that most of the trend mechanics seen today will operate very differently in the case of rallies and declines. You can collar the position of the bull-bear axis and then you shall be able to filter your trades in tune with the predetermined cycle. You will also find that countertrend entry practices work very well but will require a much advanced level of execution skills for the trader to be in possession of. You should not attempt this method with anything less than extensive experience and of course very careful planning. Also you should avoid picking tops or bottoms that are included within fast moving conditions. For many markets will provide much safer and more rewarding trades. Other excellent resource can be found with Google Finance, this Finance news section has an array of invaluable finance knowledge.
You should try to execute positions at the time the countertrend moves end and the primary market trend reclaims itself. The pullbacks and bear rallies will shift you much more towards the strong risk reward markers which are very much strongly in the traders favor. Trend mechanics will exhibit frequent and usually predictable countertrend movements. For the trader the main challenge during these periods will lie in their emotional self control as well as keeping up with Finance News. Like in many things success requires buying stocks when the head says sell and then of course selling stocks when the head says buy. Profit during these times relies on adhering to the most fundamental directive of technical analysis which is to play the numbers and forgetting the story.
Mastering market mechanics takes years of experience for all traders but is one of the most essential tools that any trader can have in their tool box.