Hi there.
I would like to know how other traders establish the trend for the day/week ahead. I guess one can say this makes or breaks a system if you can predict it accurately. I apply the 200 ma - I also apply the psar, but they hardly ever coincide.
Any suggestions?
The answer to “what is the trend?” is always, “what is your timeframe?”.
Not sure of your experience a quick easy explanation could be:
On a bull day, the low of the day is predominantly made within the first hour or so of London Open. So if the long term TF is bullish & you see a low & then a higher high, buy the first pullback.
Have your support & resistance etc drawn on before hand, there’s not point buying if price is just below long term resistance. The opposite for bearish days.
Depends a bit on whether you are using the day/week charts for trading or only for establishing the larger picture for trading on a shorter TF. I wouldn’t like to trade just the 200ma as it can spend a lot of time consolidating and reversing before it finally crosses the line again. I would prefer to use at least 2/3 diff ma’s to help identify the trend phases combined with, for example, an MACD and/or RSI to red flag a possible reversal coming up.
Naturally, trend lines and chart patterns tell their own story as do candlesticks.
I don’t use Trend Lines. What I use are two very good indicators to establish a strong Present and future Trend (If you know what this means). I made a total of $400 yesterday and today only using this system. I can’t give you a link here due to forum rules. But all you can do is enter the phrase “Zonal trading in forex” to google and you will find a video tutorial on how to make money with this system.
I do agree with baz1982, it depends of your time frame. It is not a bad idea if you trade H4 for example to take look on D1 for the trend.