Since the market will only ever either be moving up, down or sideways, and you don’t ever short the market just “go long”, then would that mean that you should only trade within an uptrend, and be looking for good entry points during an uptrend?
Most traders would probably agree with trading w the trend. It also depends on the trader and strategy.
I would argue that trading w the trend and even identidying the trend is easier said then done.
Is there a reason why you wont short the market?
When trading currencies, you’re always “short” one of the currencies since they’re traded in pairs.
Mainly because I find it slightly confusing to trade in both directions. I feel my brain is programmed to buy low and sell high in a bullish market.
Thats understandable.
As far as buying low and selling high… thats another one of those common sayings about trading that is frequently thrown around because it sounds so easy and logical
And just like “follow the trend”, its one of those saying that sounds easy in theory, but is much more difficult in practice.
Identifying tops, bottoms, end of trends, possible reversal points, etc, etc is very difficult and can get a trader into trouble.
Much success and happy trading to you
I always trade with the trend, but there is never just one trend on any chart. Its very helpful to find a trade that benefits from a price movement by taking the same direction but also an immediate price movement, by taking advantage of some price action that has already started and shows some strong energy to continue in the direction it has started.
While I don’t use multiple time-frames, I do use multiple ways to identify trends within trends, and to judge how strong a trend is compared with another that might be competing with the first one.
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Tommor’s completely right, of course.
You need to reference the words “WITH the trend” with time-frames.
Trends only exist within specific time-frames.
One of my trade set-ups is a reversal pattern. Those are obviously not “with the trend” in the time-frame where one trades them. But one can trade them only in the direction of a higher time-frame trend.
So is that trade “with the trend” or “against the trend”? It depends on how you’re defining “trend” and you can do that only by defining it according to time-frames.
It’s normal for anything you might trade to be trending in one direction in a specified time-frame and in the other direction in a different time-frame, simultaneously. So it isn’t really helpful to think of “trend” as something “absolute” or “objective” at all. And this issue is at the heart of your question.
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Reverse trading setup is not for the new and intermediate Forex traders! Yes, till now I am interested in an only trendy setup of the market!
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This is very, very wrong.
Awful advice.
Newish and intermediate forex traders should be learning to look for long entries in higher time-frame uptrends and for short entries in higher time-frame downtrends.
These are among the highest probability, highest win rate trades you can get.
They’re also a great confidence builder for beginners.
And reversals in the lower time-frame traded from are among the very best of those, because that way you’re entering after retracements in trends in the higher time-frame.
This therefore typifies exactly the kind of entries that newish and intermediate traders should be looking for.
The thing about trends is that they run on various time frames. Of course, movement is really formed on the fastest time frames on a session to session basis. This movement adds up and starts to look like a trend often times in the longer time frames. Let’s say a trader only looks at the Daily time frame, (that is one bar per day). Now, let’s say that a 4 hour chart trend typically lasts 1 to 3 weeks. It is possible that once the trader realizes that they are in a trend on the Daily chart that the 4 hour trend will be coming to an end. The longer your time frame, the more you lag behind the movement of the market. Trading at the tops of up trends is very common it seems. The question often I’ve asked is why. I don’t think this necessarily means that you are trading at a reversal of the Daily trend. It might not reverse. It might just correct. However, can you afford to trade into that correction and hold the trade with the leverage of Forex trading? One way or another, a trader must figure out how to trade with the flow of the movement, but be early. They must always have a written plan as to how they are going to trade. A big part of your plan is how much risk you will take per trade, and of course, what type of risk to reward you are trying to attain in your trading. Most traders lose more on their losses than they make on their wins, and this is usually a recipe for losing money over the longer term. I will tell you that it can be difficult on a day trading basis to trade against the flow of the movement. You can take some big losses that way and that is not the best thing for your risk to reward ratio. Also, try trading short. Eventually, you will get used to it. Of course, in Forex currency pairs, as someone already said, you are always going long one currency and short another. Another oddity is that when you day trade, you often also will look at the longer term charts. If there has been a lot of movement on the longer term charts in a direction, you are just waiting for a correction on a day to day basis, which usually happens. It is is usually strong, and you can see it on the fast term charts like the 1 minute chart. There is a tendency of most traders to want to jump on board in that direction they see on the longer term charts. They think they have missed out on something. But, I always think something like, they are late the party.
Yes, they should learn and particle enough in the demo; I meant they shouldn’t try for live trading directly!
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All should learn trading first on demo accounts. here you can know how to go with trend and to what limit one can go with the trend. I think we should not go to extremes with trend. Just get your target between the trends.
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No, I am active both kind of market moves, I mean trendy and reversal pattern as well! But I use only half trading lots size in reversal market!
Ha… I’m the weird dude… I don’t believe in follow the tread… I believe in go against the tread. That y I only hunt for reverse.
Yes, reverse trading is possible! But not sure, how you can always trade against the market trend as, the ratio between trendy and reversal market is 70:30!
My trading is using 10m chart, so there is alot of opportunities, I not only trade for reverse I also trade for price pull back. Those who saw my older post b4 will know what I’m taking about. Cos there photo to show how to trade reverse or pull back.
I am interested about your b4 post! Can you add here the link please? I seem, you are doing scalping trading!
This is one of the post I put. Yes I’m Scalping. And i only use heikin candle. There alot of opportunities when trading with 10m chart within 30min . Sudden price jump is one of it, means small breakout. 5m chart too many noise… 30m chart too long… So 10m is the best for me to Scalping. Idk how other trader trade, but for me it work. Plus the help of ichimoku cloud. Bought higher percentage of earning pips. BTW I’m using double Sar. Alot of trader think Sar on top of price they short it… But not always get what they want. They hv to fully understand how Sar really works… It call stop and reverse (Sar) it don’t call this name for nothing…
i’m trading only with the trend in the time frame higher than my trading time frame
if i trade on 15 minute chart, i check the trend on the 1 hour chart first and on the 15 minute chart i only enter trades in the direction of the 1 hour chart trend
i find the trend on the 1 hour chart from a moving average, if the price is above a SMA(20) with upward gradient, then it’s an uptrend on that 1 hour chart, and i enter only long trade from the 15 minute chart
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