Qualified Trends

In his book, Trend Qualification and Trading, L.A. Little introduced the world to a redefinition of trend. He shows you how you can distinguish between trends classifying some as suspect and others as confirmed. Essentially, L.A. has placed a value on trends saying that some are better than others. It stands to reason that if some trends are more durable than other then it would be worth your while to follow those trends that are better than those that are not.

Although the basis of trend qualification it is important to realize that trend is just half of the puzzle - the other half is timing and there L.A. has introduced the concepts of retest and regenerate as well as anchored support and resistance.

These three ideas are the building blocks for all neoclassical technical analysis.