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This is a show case of how to interpret buy and sell signals from a trend chart.  I am going to use a gold stock ETF for today's case study.  From the chart below a low risk setup buy signal was generated on Dec 22, 2009.  We bought GDX and held it for 12 days and saw the black bar showing up which generated a high risk or topping sell signal on Jan 8, 2010.  This is a perfect trade setupto show "Buy low and sell high".  You don't need rocket science to do that.  All you need is patience and a clear mind to wait for the trading opportunity to come to you.  We will wait for the next low risk setup and cycle it again.

 

 

Trend chart showing Gold Mining ETF GDX on low risk setup along with buy low and sell high signals.