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.TRADING METHODSBUBBLE TRADINGIn established uptrends, prices bubble above the trend.In over heated markets these bubbles can extend well above the long term trendline.Bubble tops are difficult to pick exactly, but an entry made on the long term trend line, and an exit made when predefined financial targets have been met, is a conservative trading strategy.Traders who are late in seeing the opportunity can wait until the bubble collapses back to the long term trend line.Buy orders placed in advance at these levels are filled on the pullbacks.This approach is not appropriate where the underlying trend is also a bubble.ie A very steep trend building on a rapid long term trend breakout
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