it is best that you learn it practically, asking in theory will make you confuse more
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Absolutely. The ends of wicks demonstrate “price rejection,” which is another way of saying “support and resistance,” and trendlines are about support and resistance.
I find more time than not the price likes lines draw at wicks. I start by trend lines in the past at the first swing high or swing low after a reversal (could me major or minor). I also then redraw it from the most recent price action into the past. Then I look at how my two lines match up. Not all wicks will hit, but I leave the line where it hits the most wicks and sometimes the highest open or lowest close in the area. The tends to work pretty good for me. But trying to be exact with all wicks is a lot of times impossible. So I start with the weekly, draw lines, then daily, draw lines, then 4hr and 1he. You get the idea.
Some times you just zoom out to the weekly and daily and start there to see the trend.
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If you are asking me, I would say some simple ones that "I regularly use:
Ichimoku, MACD, Bollinger Bands, trend lines, and MA.
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One of my chief main indicators is Parabolic SAR set up at (0.09 0.50) on charts. These little balls assist in showing the previous highs and lows of price movement And if you are trend trading it it is essential in determining where the movement is likely to fade out. It’s an easy T/P.
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SMA, EMA. In my opinion, it is a good indicators to analyze the market trend
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I had in my mind to use the ends of the bodies, not the wicks, from distant reading in the past. I no longer use trend lines, either bodies or wicks.
yes, there ar several indicators available in platforms like MT5, thet can help you identify market trends beyond trendlines.
Here are those:
- Moving Averages: Simple Moving Average and Exponential Moving Average are used to identify the direction of the trend by smoothing out price data over a specified period.
- Moving Average Convergence Divergence: MACD is a trend following momentum indicator. Which shows the relationship between two moving averages of a security’s price.
- Average Directional Index: ADX is used to quantify the strength of a trend.
- Parabolic SA: SAR is a trend following indicator, which provides entry and exit pints.
- Bollinger Bands: Bollinger Bands consist of a middle line, Upper band, and lower band. They help identify the volatility and direction of a trend.
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How does your strategy use them?
Just go with MA based indicators, until you can draw the lines yourself.
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Always check volume if you cannot understand the trend or where it’s going.
Once I have found a new trend movement on the weekly chart - plus the same 4hr movement - I use PSAR balls to show me where the previous trend reached a high or low price movement. This enables me to place both my T/F & S/L on the assumption that the new wave has a reasonable chance of reaching the same journey.
So, for clarity, forex currency trend trades contain several Time Frame candles moving in the same direction (both upwards and downwards). My job is to determine where the trend would reach the previous support and resistance zone,
hope that helps.
Exactly, that is a fantastic tool for trend traders.
Simple moving average daily bars 200
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i got to get back to using these.
So are you waiting for weekly closes before making a move down to the lower time frames (so 4hr)? Couldn’t there be short term trends forming in the mean time?
Each morning I review the Weekly chart candles. If it is in a trend with the closing price noted, I move down to that morning’s 4hr chart to see if it is still following the trend. If so, I could expect the trend to continue that day. At least I get a positive probability of a winning $50 trade.
I suggest you do not use any indicators for trading, the price action, the rice line movements are the only reliable things. Follow my advice or regret it, and you will!
I suggest you @PrestonRiver don’t do that kind of statement. Price action is one of many methods in trading