As I learn more and more about the Forex market, it appears readily apparent that one can (should?) apply different trading techniques depending whether the market is “ranging” or “trending”.
I’ve read numerous interpretations of when a market is deemed to be “trending” and would like to get your take on it.
I’ve seen definitions related to the “proper order of moving averages”. Ie. The, for example, 8 ema > 21 ema > 89 ema > 200 ema then its in an upward trend.
Then I’ve seen definitions that says as long as the price is closing above the XYZ ema then its in an uptrend.
Yet others physically look at the slant of (up or down) of the XYZ moving average.
And some just draw a trendline and then thats the trend.
So, who do you think is a good way to determine if you’re in a trending market or a ranging market, and what affect does the timeframe you’re looking at have on your method?
So, who do you think is a good way to determine if you’re in a trending market or a ranging market, and what affect does the timeframe you’re looking at have on your method?
When the chart is printing higher highs & higher lows you are in
an uptrend.
When the chart is printing lower highs & lower lows you are in
a downtrend.
Also any sma on a chart if it slopes up indicates an uptrend &
vice versa, downtrend.
As far as on which timeframe method you use is basically down
to your choosing, it must comply with any system you are using.
For example I use 3hr, 1hr & 15M, also I take a quick look at the day
chart. Once you have the long term trend though it can take a fair
time for it to reverse.
On the smaller timeframes though the chart may be ranging, but
we are still in a larger timeframe trend, this needs to be taken into
account when choosing which way you take a trade.