Uncover the trades between the lines by locating the momentum in the charts. Dennis Gartman explained how to find the trends.
Do more of what works and less of what doesn’t, Gartman said. It sounds simple and it’s the best path to profits, as far as he is concerned. Cut the losses and add up the winners. To find a potential winner, he looks first for a fundamental reason to buy something and then turns to its chart to affirm his position.
Specifically, Gartman looks for points of consolidation and gaps on charts to tell him when a trend is really intact and whether it might push higher or lower.
Gartman admits that even the best chart analysts lose money on 60-70% of the trades they put on. The trick, he said, is adding to the winning trades while cutting the losers.
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