You know when your momentum trade ends once your trailing stop is busted, all great waves end!
The trailing stop is also a great trend tool that will show up periods of strength and weakness that force a trend change. In the Wyckoff trading world that is something we want to know about.
"Mathematical science, which is the only real science that the entire civilized world has agreed upon, furnishes unmistakable proof of history repeating itself and shows that the cycle theory, or harmonic analysis, is the only thing that we can rely upon to ascertain the future." ~ William D Gann
"A market is the combined behavior of thousands of people responding to information, misinformation and whim." ~ Kenneth Chang
"My experience has been that in successful businesses and fund management companies, which performed well over the long-term, some courageous decisions were taken. Courageous fund managers reduce their positions when markets become frothy and accumulate equities when economic and social conditions are dire. They avoid the most popular sectors, which are therefore over-valued, and invest in neglected sectors because being neglected by investors they are by definition inexpensive. The point is that it is very hard and that it takes a lot of courage for a fund manager to avoid the most popular sectors and stocks and to invest in unloved assets. Finally, every investor understands the principle 'buy low and sell high', but when prices are low nobody wants to buy." ~ Marc Faber
"The minute you get away from the fundamentals - whether it's proper technique, work ethic, or mental preparation." - the bottom can fall out of your game." ~ Basketball Legend Michael Jordan.
"Successful speculation requires staying on top of changes in industries and companies that either create new industries or improve on existing industries. The majority of your profits will come from these two ... The shrewdest traders throughout history all adapted the skill of reactionary change, as the market constantly presents new and different opportunities." ~ Bernard Baruch