The higher highs indicate the bulls are in control while the intermittent higher lows indicate consolidation periods. Traders can use moving averages to help identify an uptrend with rising lower frame moving averages (such as the eight-day or 21-day exponential moving averages) indicating the stock is in a steep shorter-term uptrend and rising longer-term moving averages (such as the 200-day simple moving average) indicating a long-term uptrend.

A stock often signals when the higher high is in by printing a reversal candlestick such as a doji, bearish engulfing or hanging man candlestick. Likewise, the higher low could be signaled when a doji, morning star or hammer candlestick is printed. Moreover, the higher highs and higher lows often take place at resistance and support levels.

In an uptrend the "trend is your friend" until it’s not and in an uptrend there are ways for both bullish and bearish traders to participate in the stock:

See Also: Meta-stasis: Tech Giant’s Reach Grows — Where Is This Headed?

The Boeing Chart: Boeing gapped up 2.7% higher on Monday and made a higher high above the Nov. 8 high of $226.99. The stock has been trading in an uptrend since reaching an Oct. 28 low of $204.60. Boeing’s last higher low was printed on Nov. 10 at the $217.27 mark and although the stock will need to eventually print another higher low it has an almost 6% range to do so without negating the uptrend. 

The Canopy Growth Chart: Canopy Growth gapped up slightly on Monday but immediately fell down to fill the gap, which may give bulls more confidence going forward because gaps on charts fill about 90% of the time. Canopy Growth has been trading in an uptrend since reaching a low of $11.31 on Nov. 5 and on Friday printed a higher high above the Nov. 10 high of $14.33. 

Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.

Photo: Hans Eiskonen via Unsplash