When I look at the major trend on a Daily and it is up, but 1 or more most [B][/B] current candles are bearish…down, is that still considered as an uptrend or is it now downtrend? Sell or buy signal?
Thanks in advance for you assistance.
When I look at the major trend on a Daily and it is up, but 1 or more most [B][/B] current candles are bearish…down, is that still considered as an uptrend or is it now downtrend? Sell or buy signal?
Thanks in advance for you assistance.
Google “how to read charts”
If you are in an uptrend, which can be described differently for different trading systems, and you see some bearish candles, this is just what you want to see. You dont go long after a series of green candles. You go long after a series of red candles (with short tem confirmation on lower timeframes.) So essentially, when you are going long, there will be a big red candle or two right in your face daring anyone to think long. The ones who make money in these markets are those who can see through the matrix, see through the red candle and identify the emotion behind it. Is it traders remorse? Is it respect of an important level? Or is it a reversal? Obviously a trend trader is very wary of reversals. This is where lots and lots of experience comes into play. So get out there and demo. Just dont be afraid of those candles that are going the opposite direction - they are your freinds.
I hope that this was more helplfull than a reference to google.
Alyways sell…
Hi GBLilleyUSMC;55159,
Thanks. And yes it is more helpful. Not sure if I understand this though. You dont go long after a series of green candles. You go long after a series of red candles (with short tem
Right now GBP/USD f.e. is in up trend on a Daily chart and has been in up trend for some time…
All candles are bullish. Are you implying that it is a sell signal even though it is in an uptrend?
The reason I’m a bit confused and want to be clear is because everyone always states to follow the major trend.
Look forward to learning more.
I think what GBLilley was saying was; uptrend - buy in the dips, downtrend - sell in the bumps. Watch out for key levels of S&R though.
Fibs and Bolinger Bands can be useful.
Did you google yet? There’s some good info there.
I believe what GBLilleyUSMC is trying to explain is that if a pair is trending upwards (a few green candles recently) that is not the best time to get in the market. It is all a matter of timing and not that he is telling you to trade against the trend. Your best returns will be made if you trade with the general trend, but get in just after it has made a slight correction (a few recent red candles)
I beleive that the original question was something along the lines of, "If we are in an uptrend, but the most recent few candles are red… " So no I am not implying that you buy during a downtrend, thats called catching a falling knife (Which can get you cut, and I dont like getting cut… it hurts me.) I am saying that if you are buying on a big green candle after a series of green candles on an uptrend, you are most likely price chasing. Get in on a dip. And a dip in an uptrend is going to look like a few scary red candles.
Thank you all guys for your help, but my question was referred to Daily/weekly chart and not a short time frame.
I was not sure how to interpret a long up trend/downtrend with 1 or 2 most recent candles going in apposite direction.Was that indication of change of a trend or just a short correction …was my question.
Thanks
The response is the same: after a series of up candles (there’s no set number here) in a clearly discernible uptrend, wait for a pullback - a smaller series of red candles - to make your entry. If you are long, you’ll see this referred to as “buying on the dip”, etc.
Long, sustainable trends do not continue in a single direction without any pauses or temporary interruptions: they run forward, take a few steps backward, and then run forward again. If you want to get into the trend, don’t enter while the pair is running forward; wait until it steps back to get in at a better price. Otherwise, you risk getting stopped out when the pair does pull back against you.
This is true across all timeframes - there’s no difference between how to treat the trend on a 15 minute chart v. a daily chart. The only distinction is how long it will take for a pullback to fully evolve for your entry. It isn’t necessary to wait for a pullback - sometimes it is [I]not[/I] the most appropriate thing to do; but those are shades of gray for traders who’ve been at it awhile. At this stage of the game for you, GBLilley’s advice is sound. Some examples of this in action would be helpful, which is why Vulcan’s suggestion is a good one, too.
Just tried this and there really is some good info.
Thanks
Andrew,
Very good explanation. I always had a problem with assessing what trade to take when there is an interruption in a major trend. So basically I should follow the main trend and not trade in the direction of a correction/pullback if in apposite direction, like a few candles changing direction.
I would see down trend on short time frame and go short while the long time frame would be uptrend, just because a few candles would be bearish.
Shortly after my trade would go against me and in the direction of a long trend.
Now I learned a good lesson. Is there a quick way to tell if the trend is actually reversing?
I look at long time frame S/R but that is probably not the way experienced traders work.
Thanks so much again Andrew.
Hi VulcanClassic,
I did, but when you are new to all this it is difficult to comprehend the content where you are not able to ask for a clarification.
For me this forum has been very helpful.There seem to be lots of very nice people on this forum who take time from their busy schedules and help others.
Thanks I really appreciated.
Hi Hegoode,
You ,GBLilleyUSMC and Andrew really explained it well… it just took me a while to read it over until i got the idea now. I’m just learning so much in a short period of time and I get confused with all the info.
I just started my demo, but I want to learned it right from the beginning and not pretend that I understand something if I don’t.
Thanks again to all you guys.