Long-term traders who want to conservatively trade indexes and index derivatives would be best suited by this method.

All you need to do is follow the Market Stage section of the "Daily Market Outlook", where you will find what the longer-term trend is for all the major indexes.

How to make money using our Market Stage:

• When, in the Market Stage, our analysts determine that the market is in a longer-term uptrend, conservative traders could act on that determination by buying stocks, index shares/funds and holding them until we determine that the market has approached a resistance corridor or longer-term overbought levels. During a resistance corridor is an excellent time to fix profits and wait until a new trend has been determined. All you need do is check the Market Stage once a day to see if it has changed.
• Traders with a higher risk tolerance can also make use of any reported downtrends to play short, and then cover their short when the Market Stage announces a support corridor or longer-term oversold levels. This method is not suggested for highly conservative traders.
• We recommend that during Resistance or Support Corridor you convert all open positions to cash or bonds.

Recommendations:

• Read the "Daily Market Outlook" before analyzing volume in order to see what the current long-term trend is.
• If during an uptrend you feel that the market could go higher but our Market Stage announced that the market is in a Resistance Corridor, you can place a trailing stop order in order to protect your profits.
• We suggest that before making any trading decisions you compare our Market Status with the results of your own technical analysis.

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