Reading Price Charts Bar by Bar: The Technical Analysis of Price Action for the Serious Trader.
For a trader, the fundamental issue that confronts him repeatedly throughout the day is the decision of whether the market is trending or not trending. If it is trending, he assumes that the trend will continue, and he will look to enter in the direction of the trend ("With Trend"). If it is not trending, he will look to enter in the opposite direction of the most recent move ("fade" or "Countertrend"). A trend can be as short as a single bar (on a smaller time frame, there can be a strong trend contained within that bar) or, on a 5-minute chart, it can last a day or more. How does he make this decision? By reading the price action on the chart in front of him.
