The title says it all really… What is your prefered way to determine a trend in the market? Doesn’t matter currency or time-frame, i’d like to check them out!
Cheers,
Ivah
The title says it all really… What is your prefered way to determine a trend in the market? Doesn’t matter currency or time-frame, i’d like to check them out!
Cheers,
Ivah
Hi Ivah,
Well I hope this answers your question.
I was taught that a trend may be determined from a 30 to 50 pip move in a particular direction from either an area of support or resistance.
Of course you still have to watch keenly if a reversal occurs after you open your position/s as it is not always easy to figure out how long a trend will continue.
Cheers,
paidpipper
Easy…by the angle of the 50 ema.
petefader,
i dont know that method. care to elaborate?
if price goes from bottom left to top right of your screen, it’s an up trend, vice versa for a down trend. The definition of an uptrend is higher highs and higher lows, reverse that for a down trend.
You can use MAs or trend lines or what ever visual aid you like but you can just look at price and see which way it’s headed.
The definition of trend to me is 1. a move 2. a retrace 3. continuation of first move. Then you have an established trend.
I trade only in the direction of the 50 ema if I am looking to trade the “trend”. I get in on pull backs, as long as the 50 ema angle holds. If it goes flat, or reverses angle, then the trend is probably over…untill an angle has been established again.
This is how I use it in the 5min for scalping.
http://forums.babypips.com/free-forex-trading-systems/30927-mad-scalper-29.html
Good technique.
Yes I know now what you are talking about.
I like to use MACD and Fibs to help me.
It also helps me to know what the general attitude of the particular pair is for that
particular period.
I’ve personally found ichimoku to be very strong in determining the trend. And more importantly good entrance points and when the trend is over.
I agree, whenever the markets constantly waves creating new levels in either direction thats a strong indication of a trend.
Obviuosly there are lots of answers to the question. I personally like to use regression channels. The longer it stays in the channel, the more established the trend. If it bounces off the bottom or top a number of times, that is a trend.
I realize that a trend exists only as I define it. That is, a trader looking at hourly charts can ‘determine’ the trend to be up while another trader looking at daily charts can think it’s down.
Some traders like to use two definitions for trends, one longer term trend that acts as a directional filter, and another shorter trend for entry/exit.
I like to keep things simple so I use price breakouts for long and short term trends.
But ultimately, the amount you trade relative to your equity has more to do with the profitability of a system than when precisely you get in and out of trends.
Thanks for the answers! They all sound simple and sensible, though I’ve never heard of the forex tool “ichimoku” before. I’ll look into all your suggestions when I have time tonight !
Ivah
For me, just drawing basic trend lines on the chart connecting higher highs/higher lows and vice versa. I would rather keep everything as simple as possible.