These should be at the top of your list - without question… only you can find what suits you - there are as many different trading styles as there are traders…
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Hiya,
I’m looking for 1H or less time-frames and day trading mostly. I want to monitor position as much as I can while I’m newbie.
Thnx @RISKonFX
USDJPY is in a weekly -5 year- up trend, a triangle on the daily chart for a few months, a slow, wide down trend on an hourly chart, but a pretty fast up trend on a 15 minute chart.
That just tells where it’s been and how it looks, Wish it told me where it is going.
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The more fools are trying to use these methods the more is fish for market whales which manipulate on this wrong perceptions easily.
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Hiya,
May I ask do you drew this lines yourself or its Technical Analysis auto detection stuff? I mean the colorful lines in the charts.
Thnx
Just drew them on Metatrader 4 chart.
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There’s something that just occurred to me about this question that you should also consider OP. I know you want to try and enter strong trends, which is a great idea, but one thing to also consider is that by the time the trend is very strong, the move is likely over. The weaker the trend is the earlier it is in the move and the more likely it will last for a while. Again, I am not saying that trying to enter a strong trend is a bad idea, but I just food for thought.
The menu of the food for thought in these discussions sometimes involves a little talking at cross purposes because the items on it tend not to be precisely defined.
There’s a danger, in this specific conversation, of confusing two slightly different points.
The first is that in general, entering a trend earlier rather than later is a better overall prospect.
The second is that in general, entering a strong trend rather than a weak one is a better overall prospect.
These two principles, each independently true and valid, can sometimes conflict.
The very best offering from the market, in this context, is to enter a strong trend after an early retracement. Not necessarily the contradiction in terms it appears, because duration is far from the only way of assessing the “strength” of a trend.
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I use a couple of measures apart from the usual (i.e. price rise in %, price above MA, short MA above long MA, MA direction etc.) to confirm the strength of a trend.
I am a long-term trader off the daily and weekly charts only so adjust this as necessary to your own time-frame. These guides are for uptrends -
Strength - count the number of highs, lows and closes off the last X weekly bars which are above/below the 50EMA. This gives a numerical points total so you can rank different trends by this measure. Convert to score out of 100 if you wish.
Momentum - Look at the bar for the last completed week. See how many adjacent and preceding bars are intersected by horizontal price lines drawn from the last week’s high and low. The lower the total, the greater the recent momentum.
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Very interesting method. I like it.
Hi why do you use just 1 hour charts and day charts because I’m looking at being a trend trader and last week i did great 26/0617 but this week 3/07/17 I’m doing terrible and I’m really working hard to make sure i become consistent and profitable because i would this to be my new career I’ve only been live trading for three weeks but i have been practicing and basically i started with £2000.00 i made £420 and withdrawn that and id something so stupid and didn’t looking at the spread of a currency i know really dumb. And lost a bit chunk £900 i did have a tight stop but it was slippage that killed me. so my account now is £1105 I have a part time job which just covers my bills and I’m 22 so not too old but not young ha-ha plus would you say ignore 30 min and 15min charts ?
Hi can I get the law of chat from u too thanks
Good and interesting post I have had a quick look at some of the replies and I think any one of them can give you a reliable indication of the trend strength.
When you say strength of a trend, do you mean how sharply/aggressively (magnitude) the trend is moving, or how likely the trend will continue in the same direction (duration).
This is my fav topic, some of the responders have certainly hit the nail on the head. I think there is a growing curve from indicators to not. I still use a double billinger bad for a crutch and a CCI for momentum.
But more often than not I am just using the USD index aka DXY as my indicator and just trading what I see.
We are traders not old fashioned investors. Trade what you see and as far out as your spyglass will comfortable allow.
As the saying goes the trend is your friend, Kill you losers and allow your winners some breathing room, when the price action changes so has you trade, kill it asap.
Its not about maybe its about winner take all and that my fellow traders is your edge.
Want a 5B plus example check out Paul Brittons latest podcast with Covel.
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I like the ADX with DMI - you can see where you stand with buyers and seller. The DMI divergence gives a good indication of trend strength. Also helps to identify whether overbought / oversold conditions is a trend reversal or pullback.
ADX/DMI great for trending conditions, but needs an oscillator in ranging conditions.
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By the way, HA candles is also very good trend indicators, but not sure if Fib will work with HA candles.
Yea! Read, Read, Read and read some more. You’ll read until your eyes pop out. I have read book after book, and Al Brooks price chart bar by bar and that is exactly what it is, bar by bar. It’s good for newbies to read and learn, most of it you’ll learn here for free, but to get an overview of what profitable traders do, books can help. But I think all this learning and reading is leading to one conclusion, study the charts. After a while your probably gonna figure it out. I myself have noticed this after reading the charts in so many different ways i am seeing patterns, in the charts. You can tell a strong trending market or weak market and volatile market, by looking back several weeks or days, fundamentals, news, indicators, price action, you name it, all good ways to trade, just finding what is your cup of tea is the hard part. Core training is essential, learning the basics then the system will follow. No there is no Holy grail, if there were we would all be rich!
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Hi Marco91, please how can you separate the DMI from the ADX, and how do I set those numbers you mentioned ?
Thanks a lot for this. This piece of advice seems to be recurring everywhere I look. I’d do well to follow and implement this as the foundation for my method of analysis now I’m starting out in this trading game. Thanks again.
Hope you have levelled up your game with sound money management practices?
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