TRADING METHODS
BUBBLE TRADING

Inestablished uptrends, prices bubble above the trend. In over heated marketsthese bubbles can extend well above the long term trendline. Bubble tops aredifficult to pick exactly, but an entry made on the long term trend line, andan exit made when predefined financial targets have been met, is a conservativetrading strategy. Traders who are late in seeing the opportunity can wait untilthe bubble collapses back to the long
term trend line. Buy orders placed in advance at these levels are filledon the pullbacks. This approach is not appropriate where the underlying trendis also a bubble. ie A
very steep trendbuilding on a rapid long term trend breakout.