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Knowing whether the market is trending or moving sideways can help a trader determine what type of system they should use to enter trades. For example, if the market is choppy with lots of sideways action, entering a trade based upon a trend following system such as moving average crossovers can result in the trade being quickly stopped out.
Global Equities Market futures are pointing slightly higher for Wednesday’s open. The DJIA finished lower after a mixed day on Wall Street, losing 17.24 points to close at 10,433.71.