what methods do you use to determine market trends…would like to investigate your methods of trend determination and market bias…particularly on GBP USD and EUr USD…and how reliable are your methods at determining that a trend is unflolding early…
Markets dont trend they have big ranges and small ranges. The only pair I am aware of that has ever had a trend out of the ones I follow is AUD/USD. Its been moving up steadily for the past 10+ years and the very reason I am shorting the rallys
Hah, sense at last, and a nicely phrased question, and in which case it deserves a very valid answer.
I wait for high volume, then see the response to that, whatever the response is the start of a new trend, then trade with the trend until the reverse response happens.
Accuracy - nigh on 100% !
i tried to post but doesnt seem to be appearing …so ill try again.
what indicator do you use for volume purple…the one that comes with the charting software ?
is the COT report a good thing to use for trends
and do you know where the information below comes from
i need it urgently…
cheers
Here is a real easy way….
Use the previous week’s high / low as a gage.
If higher than the previous week high, it’s an up trend, if lower than previous week low, a down trend.
It’s not rocket science but it seems to work pretty well.
Volume indicators are on every MT4/MT5 package, but it’s not as simple as just getting the indicator, you need to learn how to use it, and it will take a while, you need to be patient, and don’t rush into it. Like I keep saying, people will go to college for 3 years to qualify for a degree which may or may not allow them to work for a living, expecting to make a pile from forex in a shorter amount of time, is expecting a lot!
d- pip …love the simplicity…and it makes a lot of sense
Determining trend?
When this:
Spies something like this:
the credit for that jem goes to Tess & company, OP of the Technical Templates threads.
That crew just never has gotten enough love.
I guess it’s because there’s a little work involved;)
hey tang…that graph is clearly a downward trend…but i wouldnt dare to get involved heavily in a position…as its run for so long maybe there is gonna be a turn around…so maybe the right question that i should have asked is…how do you determine market trends and evaluate good entry and exit positions…what lets you know if the market is due for a reversal in trend or a continuation…is there any way to make a strong evaluation of this. apart from watching support and resistance levels or fibonacci lines…
I doubt any of them could care less about the love, but you’re right about the work thing Master Tang.
I guess those with enough nous to spot a good thing have, & are benefitting from the quality on those threads.
If there is no sign of any high volumes, it will continue, if high volume appears, it will reverse soon, if there is low volume on the retrace of the move it will continue, blah blah blah blah, Oh, I’m reeling this stuff off, off by heart now!
Reluctance to continue the trend further.
That will reveal itself by breaking back through the trendline & attempting to put in a higher low (or a series of higher lows, depending on which timeframe you’re observing).
It will also reveal itself by forming neutral type bars or candles, such as doji’s, spinning tops which indicate hesitancy & indecision. Bullish engulfing bars, which indicate strength off support zones. Inside bars, which could indicate a breakout to the reverse side of the trend.
the volume indicators…do you know where they get their data from on MT4 as i was told it was impossible to monitor volumes properly in the forex market …and that the best indicator is the COT REPORT.
Reluctance for the trend to reverse & hold.
Prices might well pullback, but generally the pullback is weak with small range bars & shallow moves.
You’ll also notice price stringing out into a range or consolidation box where bids & offers are virtually equally matched.
You also have to take into account how far price & how aggressive price has travelled leading into a consolidation or pause in the trend. Price rarely moves in a stright line. There will always be pauses to offload stale orders, check for continuation potential & gauge the strength of the levels it’s moving into, especially if those levels have proven to act as previously strong support or resistance.
That’s why I highlighted the spots up at the top. Those were the early early warning signs of a direction change. When a new direction is just starting, it’s not so obvious, so you use just as d-pip said. A succession of higher lows, or lower highs. And in conjunction with recent activity at those points, like weekly opens, closes, highs, lows, you can get in early enough to establish a core position that leads to some healthy profit opportunities.
those threads…alternative technical templates…technical templates 2 …and technical templates continued are gonna keep me real busy …looking forward to it.
A tip for you.
Read Tech Temps2 & Tech Temps Continued first.
I found that the latter 2 threads contained almost all of the generic information contained in the 1st thread.
Basically it pulls it all together & repeats the relevant stuff consistently throughout the work on the latter 2 threads.
That crew are prop traders and there is a wealth of great advice from them on how professionals approach and manage their trades. Hands down the best thread on these boards imo. Gold like that should be stickied up front somewhere not languishing pages back but hey ho.