In addition to simplifying the major trend analysis, one can also use Fibonacci analysis on the flag formation to give you an objective entry-level protective stop, as well as an initial profit target.

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To determine trend changes, one of my favorite tools is the multiple time frame analysis of the on balance volume that I discussed in a recent trading lesson.

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Chart Analysis : The iShares MSCI Brazil Index Fund ( EWZ) dropped below trend line support, line b, on Thursday, although it did rebound on Friday.

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It should be noted that even if the December lows were broken, the long-term positive action of the on-balance volume (OBV) indicator would still keep my long-term trend analysis positive.

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