Under condition of an international financial crisis this is very important to understand how it works. Where are the roots of this crisis? How had this happened? What to expect next? And mostly important how to make use of it?

Phase I: Capital Inflows and Real Exchange Rate Appreciation

Theory

The definition of an uptrend is: a price pattern making a series ofhigher lows and higher highs.

As I said in the last chapter, trading stocks in strong uptrends is where you and I will spend most of our time. Swing traders target the two-to-five day breakouts in a stock that is beginning a hardy uptrend. Position traders scan for stocks breaking out of a Stage One base, then buy and hold for the duration of the uptrend, possibly four to six weeks.

TWO EMOTIONS THAT RULE THE MARKETS

Two polar opposites reign side by side over the world's financial markets: greed and fear. Faster and faster, this ruling duo passes the scepter back and forth, inciting the volatility we witness-and participate in-each day.