Hello everyone, id like to post a question on trends… most of us know that theres two types of trends, a small trend and a big trend, where the smaller trend burns small candles thus making the trade last longer and a the bigger trend burns big candles thus making it short lived. So take the example of a 30 minute time frame, how can one analyse the charts and come to a conclusion that the trend has ended and begun? Thanks and keen to know your views
A major missing feature from charting software is the inability to draw in future candles.
But if you could draw in the future candles on a chart going into the future with your “ideal” trend, i.e. ideal for your trading style, what would it look like?
But more importantly, what features would reliably signal the start/end points? - I’m going to bet there won’t be any, even on the most idealised most suitable easiest to trade trend set-up.
Where a trend stops and starts depends on the actual time frame used for analysis and it can and will be different on every time frame that you look at. Since trading is a belief game, you need to come up with your own reasons for when a trend starts or finishes. You can use a simple trend line that connects the previous two swings or a combination of short and long term moving averages or even an oscillator like a MACD. Lots of different methods and its best to start plotting these tools on a chart and distinguish what it is your looking for and then create your own set of rules for that…
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I agree. Spend a little bit of time drawing lines from swing points (or fractals) and you will learn a lot about trend identification that will mean something to you. Do yourself another favor and do this on multiple timeframes for the same trading days.
I know that when I started I heard all sorts of trend definitions. Higher highs and lower lower lows, break and retest of a S/R level etc. All of them correct but they just did not have any meaning for me until I drew lines. I wonder if this might be a good topic for my blog?
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For a 30 minute trend you have to look for higher time frame. Firstly you have to identify the long term trend of that specific pair. After that you have to identify the key support and resistance level. Then narrow down your analysis for 30 min time frame. Use your tools and own understanding (very important) of the market.