The market is saying the trend is up...

Despite all the prophets of doom and gloom around, the markets are signalling that the trend appears to be upwards at the moment. This long signal has been showing on the standard system for a number of days now, and as of today, the longer term system is also showing a long signal.

There have been plenty of individual shares performing well this month - hopefully this is the harbinger of a 'trendier' 2012...

Remember that trend followers do not predict market direction, or set profit targets. We simply follow the beat of the market, and react to price. We also do not believe in the terms 'overbought' or 'oversold', nor do we look to trade reversals by trying to pick market tops or bottoms - we simply look at the price action and determine if there is a new trend forming, and if that is the case, we take a position until such time when that trend finishes.

Those predicting a sharp fall in the markets in 2012 may be right - given time. That will be when the markets signal that the current uptrend has finished and been replaced with a new downtrend. Until that point we are simply following the market.

The beauty in trend following is it's simplicity. No mass of conflicting indicators on your charts, no talking heads on CNBC and Bloomberg to listen to - you simply need to follow the one metric that everyone can follow and understand - price. You can also structure your day so that, by leveraging your computer time using appropriate stock scans, you can operate a trend following strategy in a matter of minues per day without having to aimlessly trawl through hundreds of unsuitable candidates.

If you would to know more about how to trade using the trend, then consider either purchasing my e-book, joining myself and other traders in the members area, or even undertaking some 1-2-1 training suited to your own needs.

Remember that trends always occur after a period of consolidation or uncertainty. After a relatively trendless 2011, the potential is there for a significant move in the markets in 2012 - make sure you are ready to profit from this.