Trading with a trend: basics and strategyIn this video I explain how to indentify trends on the chart and how to use this knowledge to make trading decisions. At the end of the video we'll create a simple yet profitable trading strategy
Waves Light indicator:
Disclaimer
I don't give trading or investing advices, just sharing my thoughts
Uptrend
📊 What are Swing Points?📍Types of Swing Points
A swing point on your chart is simply a turning point for price in the past, either to create a considerable pullback into an established trend, or to reverse it altogether. When a turning point creates a mere pullback it can be classified as a minor swing point. When it creates the base to reverse a trend, it is classified as a major swing point.
📍Why are swing high and swing low formed?
A swing high and swing low is formed due to what is known as support and resistance. The technical explanation for support and resistance is as follows:
🔹 A support forms for the price when you notice that there are more buyers than sellers at a certain price. The demand for the asset or the stock overwhelms the supply and thus pushes price higher.
🔹 A resistance forms for price when you notice more sellers than buyers at the price level. In this case, price fails to move higher and therefore declines.
Swing points are key levels we use in TA to identify potential trend reversals and support/resistance areas in the markets. Swing highs represent peaks in price movement , while swing lows represent valleys or troughs. You can find swing points by studying price charts, identifying peaks and valleys, and plotting them on the chart. By connecting swing points with trendlines, you can analyze patterns and assess potential support and resistance levels. Combining swing points with other technical indicators can enhance trading decisions. It's important to consider different time frames and use swing points as part of a comprehensive analysis approach.
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Sideways Trend Example:
❗️Unleashing the Secrets of the Forex Market: Identifying Trends Made Easy❗️
💲As traders, one of the most essential skills is the ability to identify trends. In this article, we will embark on a journey to unravel the mysteries of the forex market trends like never before. So, fasten your seatbelts, get ready for an adventure, and let's dive in!
↗️The Smooth Sailing - Uptrends:
Picture yourself in a sailboat on a calm, sunny day, with the wind gently pushing you forward. This pleasant scenario beautifully represents an uptrend in the forex market. Uptrends occur when the price of a currency pair consistently increases over time. To identify an uptrend, keep an eye out for higher highs and higher lows on your price charts.
Uptrend Example:
↘️Rough Waters - Downtrends:
Now, let's transform our tranquil sailboat into a powerful vessel battling against fierce waves and gusty winds. Similar to this scenario, a downtrend indicates a series of declining prices in the forex market. To recognize a downtrend, look for lower lows and lower highs on your price charts.
Downtrend Example:
🔄The Eye of the Storm - Sideways Trends:
Imagine yourself caught in the eye of a storm, where the winds calm down, and the waves become gentle ripples. This serene moment perfectly mimics a sideways trend in the forex market. Sideways trends occur when the price moves within a relatively tight range, lacking a clear direction. To spot a sideways trend, locate horizontal support and resistance levels, and observe price movements bouncing between them.
Sideways Trend Example:
📊Interpreting the Elements - Indicators:
Just as sailors use compasses and maps to navigate the open seas, traders have powerful tools at their disposal to identify trends in the forex market. Technical indicators, such as Moving Averages, MACD, and RSI, provide valuable insights by analyzing past price data. These indicators can help confirm and strengthen your trend analysis.
📈The Art of Patience - Confirming Trends:
Sometimes, identifying trends in the forex market can feel like searching for a needle in a haystack. Therefore, it is crucial to exercise patience before jumping into trades. Waiting for confirmation is vital to avoid false signals. Look for multiple indicators aligning with your identified trend before making any decisions.
💹Riding the Waves - Trend Trading Strategies:
Once you've identified a trend in the forex market, it's time to ride the waves and potentially profit from it. Trend trading strategies involve jumping on board during an established trend and holding positions until signs of a reversal appear. By keeping emotions in check and adhering to risk management principles, you can increase your chances of success in trend trading.
🧠Conclusion:
Navigating the vast and ever-changing forex market can seem like an exhilarating adventure. By mastering the art of trend identification, you hold the key to unlocking potential profits. Remember, whether you're sailing through uptrends, weathering downtrends, or calmly cruising sideways trends, a combination of technical indicators, confirmation, and patience should guide your decision-making. So embrace the wonder of the forex market, and may your trend-spotting skills be forever sharp!
😸Thank you for reading buddy, hope you learned something new today😸
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📈Navigating the Uptrend📍 Understanding an Uptrend
An upward trend provides investors with an opportunity to profit from rising asset prices. Selling an asset once it has failed to create a higher peak and trough is one of the most effective ways to avoid large losses that can result from a change in trend. Some technical traders utilize trendlines to identify an uptrend and spot possible trend reversals. The trendline is drawn along the rising swing lows, helping to show where future swing lows may form.
Moving averages are also utilized by some technical traders to analyze uptrends. When the price is above the moving average the trend is considered up. Conversely, when the price drops below the moving average it means the price is now trading below the average price over a given period and may therefore no longer be in an uptrend.
While these tools may be helpful in visually seeing the uptrend, ultimately the price should be making higher swing highs and higher swing lows to confirm that an uptrend is present. When an asset fails to produce higher swing highs and lows, it means that a downtrend could be underway, the asset is ranging, or the price action is choppy and the trend direction is hard to determine. In such cases, uptrend traders may opt to step aside until an uptrend is clearly visible.
📍 Key Takeaways
🔹 Uptrends are characterized by higher peaks and troughs over time and imply bullish sentiment among investors.
🔹 A change in trend is fueled by a change in the supply of stocks investors want to buy compared with the supply of available shares in the market.
🔹 Uptrends are often coincidental with positive changes in the factors that surround the security, whether macroeconomic or specifically associated with a company's business model
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What Are The Different Types of Trends?
Trend trading strategies play a vital role in every trader’s life because it helps them identify early trades to exit from the market when there is a reverse trend. Typically, there are three different types of trends given below:
1. Uptrend
2. Downtrend
3. Sideways trend
Uptrend
An uptrend is formed when a price is rising in value. Usually, a bullish trend has a very common structure. The price keeps setting new higher highs, simultaneously setting new higher lows.
Downtrend
A trader can see a downtrend when the price is falling in value.
Usually, a bearish trend has a very common structure. The price keeps setting new lower lows, simultaneously setting new lower highs.
Sideways trend
The sideways trend is formed when the market remains static, i.e., the price neither sets new lows or new highs.
Trend identification is the essential part of any trading strategy. Learn to identify the market trend with objective and reliable rules.
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📈 9 Ways To Identify an Uptrend📍 What Is an Uptrend?
An uptrend describes the price movement of a financial asset when the overall direction is upward. In an uptrend, each successive peak and trough is higher than the ones found earlier in the trend. The uptrend is therefore composed of higher swing lows and higher swing highs. As long as the price is making these higher swing lows and higher swing highs, the uptrend is considered intact.
Some market participants only choose to trade during uptrends. These "long" trend traders utilize various strategies to take advantage of the tendency for the price to make higher highs and higher lows.
💥Important thinks to note
🔹Uptrends are characterized by higher peaks and troughs over time and imply bullish sentiment among investors.
🔹A change in trend is fueled by a change in the supply of stocks investors want to buy compared with the supply of available shares in the market.
🔹Uptrends are often coincidental with positive changes in the factors that surround the security, whether macroeconomic or specifically associated with a company's business model.
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📊 Four Market PhasesThe four market phases in trading are characterized by different levels of buying and selling activity, trading volumes, news and sentiment, and price trends. By understanding these phases, traders and investors can better anticipate market movements and position themselves to take advantage of opportunities as they arise.
🔹 Accumulation
In this phase, the market is characterized by low trading volumes and a lack of clear price trend. Buyers and sellers are more or less balanced, and prices tend to remain within a certain range. This phase is often seen as a period of accumulation by smart money investors who are slowly building up positions before the market begins to trend.
🔹 Uptrend
In this phase, the market experiences a sustained rise in prices, driven by increasing demand from buyers. This is typically accompanied by higher trading volumes and positive news and sentiment. Traders may look to buy into dips during this phase, in order to take advantage of the overall trend.
🔹 Distribution
In this phase, the market begins to show signs of weakness, with prices starting to trend sideways or even decline. This is typically accompanied by lower trading volumes and negative news and sentiment. Smart money investors may begin to sell into strength during this phase, as they look to lock in profits before the market turns lower.
🔹 Downtrend
In this phase, the market experiences a sustained decline in prices, driven by increasing supply from sellers. This is typically accompanied by lower trading volumes and negative news and sentiment. Traders may look to sell into rallies during this phase, in order to take advantage of the overall trend.
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The trend is your friend!Hi guys, This is @CRYPTOMOJO_TA One of the most active trading view authors and fastest-growing communities.
Consider following me for the latest updates and Long /Short calls on almost every exchange.
I post short mid and long-term trade setups too.
In this chart, we will present some basic information about the bedrock of technical analysis – the trend.
Technical research is founded on one main assumption: market prices move in trends as they are freely traded. Traders and investors hope to buy a security at a low price at the outset of an upward trend, ride the trend, and then sell the security at a better price when the trend stops. While this technique is straightforward, putting it into effect is incredibly difficult.
Trends come in all shapes and sizes, from long-term patterns that last decades to short-term patterns that emerge minute by minute. All trends tend to have the same characteristics. Investors must choose which trend is most important for them based on their investment objectives, personal preferences, and the time they are ready to spend watching market prices.
Trends are obvious in hindsight, but ideally, we would like to spot a new trend right at its beginning, buy, spot its end and sell. However this ideal almost never happens, except by luck.
What exactly is a trend?
1. An uptrend or upward trend occurs when prices reach higher highs and higher lows.
2. A downtrend or downward trend is the opposite: when prices reach lower lows and lower highs.
3. A sideways or flat trend occurs when prices trade in a range without significant upward or downward movement.
From the investor/trader’s perspective, a trend is a directional movement of prices that remains in effect long enough to be identified and still be profitable.
The most popular method amongst traders to identify a trend is looking at a graph of prices for extreme points, tops & bottoms, and drawing lines between these extreme points. These lines are called trend lines . By drawing lines between tops and bottoms we get a „feeling” of the direction of price movement, rate of change of movement, and also its limits. When those limits are broken, they can warn us that the trend might be changing.
Another method for the study of trends is the moving averages which smooth out and reduce the effect of smaller trends within longer trends.
The number of trend lengths is unlimited. The ability for trends to act similarly over different periods is called fractal nature. When we say that the trends are fractal in nature we mean that in any period we look at we see trends with similar characteristics and patterns as each other. The trend length of interest is determined solely by the trader’s period of interest. This doesn’t mean that different trend lengths should be ignored. Because shorter trends make up longer trends, any analysis of a period must include an analysis of longer and shorter trends around it.
Trends are determined by supply and demand .
As in all markets, whether apples, oil , or used car components the economic principle of interaction between supply and demand determines prices in trading markets. Each buyer bids for a certain quantity at a certain price and each seller asks for a certain quantity at a certain price. When the buyer and seller agree and transact, they establish a price for that instant in time, whatever the reasons might be for the buyer wanting to buy and the seller wanting to sell.
The technical analyst, therefore, watches the price movement and the rate of change of prices and doesn’t concern himself/herself with the reasons for the transactions because most times they are indeterminable. The number of players and the number of different reasons for their participation in supply and demand is close to infinite. Thus, for the technical analyst, it is futile to analyze the components of supply and demand except through the prices it creates.
Furthermore, when someone invests or trades the price is what determines profit or loss, not corporate earnings or Federal Reserve policy. The bottom line is that the price determines success and fortunately, for whatever reason, prices tend to trend.
Trade with care.
If you like our content, please feel free to support our page with a like, comment & subscribe for future educational ideas and trading setups.
Inflation & Interest Rate Series – Below 5.3% is Crucial for CPIContent:
• Why CPI must be below 5.3%?
• Can we invest or trade or hedge into inflation?
Disclaimer:
• What presented here is not a recommendation, please consult your licensed broker.
• Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises.
Stay tuned for our next episode in this series, we will discuss more on the insight of inflation and rising interest rates. More importantly, how to use this knowledge, turning it to our advantage in these challenging times for all of us.
Micro 5-Year Yield Futures
1/10 of 1bp = US$1 or
0.001% = US$1
3.000% to 3.050% = US$50
3.000% to 4.000% = US$1,000
See below ideas on the previous videos for this series.
How To Trade the Trend with best EntryHey Traders here is a quick video that explains the best entry point when trading the trend.
Sometimes the market will give you early signals that the trend will continue. Knowing when to find these signals or reversals can really benefit us in our trading.
Enjoy!
Trade Well
Clifford
RSI Trend Strategy GuidelinesThe RSI is a versatile indicator, and can be used to provide entry signals during a trend. To get the signals a moving average is applied to the RSI.
1. Trades are only taken in the direction of the trend. For an uptrend only take longs. For a downtrend only take shorts (puts).
2. During a downtrend the RSI must move above 60 to indicate a pullback. When the RSI crosses back below its moving average (can be at any number, just as long as the RSI is or was above 60 recently) go short.
3. During an uptrend the RSI must move below 40 to indicate a pullback. When the RSI crosses back above its moving average (can be at any number, just as long as the RSI is or was below 40 recently) go long.
4. Give the price at least two or three bars (whatever time frame you are trading on) or more before considering an exit. This gives the price some time to move in your favor.
How use Moving Averages A moving average can act as support or resistance. In an uptrend, a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure.
In an uptrend , a moving average may act as support; like a floor, the price hits the level and then starts to rise again. (1)
In a downtrend , a moving average may act as resistance; like a ceiling, the price hits the level and then starts to drop again.
Crossovers are one of the main moving average strategies.
Another strategy is to apply two moving averages to a chart: one longer and one shorter. When the shorter-term MA crosses above the longer-term MA, it's a buy signal, as it indicates that the trend is shifting up. This is known as a "golden cross." (2)
on the other side if the shorter-term MA crosses below the longer-term MA, it's a sell signal, as it indicates that the trend is shifting down. This is known as a "death cross."
The second type is a price crossover (3) which is when the price crosses above or below a moving average to signal a potential change in trend.
🧐🧐SEE THIS BEFORE SELLING BITCOIN🤯🤯Hi Trading view Family, Theres lot of noise on social media regarding selling bitcoin, But we should see this scenario before selling bitcoin.On dailt TF we can see a trendline with fib retracement, And till now it is retraceing 0.382 level with 20 EMA support. Along that we also can have testing of 0.5,0.618 level on fibonacci retracement. And high chance is that it can take support from one of these 3 levels and continues its uptrend. So take actions carefully
Date of Analysis:-16 November 2021
📚HOW TO IDENTIFY THE BEST BUY OR SELL AREAS ON A NAKED CHART📚Please support this idea with a LIKE👍 if you find it useful🥳
Here is an educational post on how to identify long and short opportunities on the chart without going through much stress.
What do you think?
Share your opinion in the comment section✍️
Happy Trading💰🥳🤗
Price channels, where to look for the entry point. Channel ChartChannel - uptrend
A channel in the market is two parallel lines of support and resistance, which are formed by the price. This is comparable to a rectangle, only its support and resistance levels are horizontal; The channel almost always slopes up or down. As with a rectangle, there must be at least two peaks forming a resistance line and there must be at least two troughs forming a support line.
Uptrending channel sell signal
Channel - Uptrend
A level breakout occurs when price breaks out and breaks above the resistance line or below the support line. For an ascending channel, a sell signal is generated when the price breaks the ascending support line downward.
DownTrending Channel Buy Signal
Channel - Downtrend
A level breakout occurs when price breaks out and breaks above the resistance line or below the support line. For a downtrend channel, a buy signal is generated when the price breaks up the upward resistance line.
Internal Channel Buy and Sell Signals
Channel - Uptrend
Bulkowski (2005) suggests buying when price reaches support and selling when price reaches resistance in an upward channel; nevertheless, he suggests not to open a short position at the resistance level and buy to cover the support level in an upward channel, but to do so only in a downward channel; it also suggests exiting trades that close above resistance or below support, which contradicts the direction in which the trader expects prices to move in order for the trade to be profitable. Price benchmarks
Price Channel Uptrending Chart Example
The above EUR / USD chart shows an ascending channel with support.a trend line formed by three bottoms and a resistance trend line formed by three peaks. A sell signal is given when the price closes foruptrend support line.
Price Channel Downtrending Chart Example
An example of a descending channel is shown in the GBP / USD chart.
The downtrend resistance line is defined by three peaks, and the downtrend support line is defined by three troughs. As soon as the price breaks above the downtrend resistance line, a new uptrend begins.
How to Predict the Angle of the trend UP/DownThis is just something I see in the market. I have acquired savant syndrome and I tend to see things differently than most people. This is just one of the things I see. I made a tutorial for my son and I am not sharing it with you. Obviously the larger the time frame the bigger the move.
iCantw84it
05.14.2021
The trend is your friend!In this article, we will present some basic information about the bedrock of technical analysis – the trend.
Technical research is founded on one main assumption: market prices move in trends as they are freely traded. Traders and investors hope to buy a security at a low price at the outset of an upward trend, ride the trend, and then sell the security at a better price when the trend stops. While this technique is straightforward, putting it into effect is incredibly difficult.
Trends come in all shapes and sizes, from long-term patterns that last decades to short-term patterns that emerge minute by minute. All trends tend to have the same characteristics. Investors must choose which trend is most important for them based on their investment objectives, personal preference, and the time they are ready to spend watching market prices.
Trends are obvious in hindsight, but ideally, we would like to spot a new trend right at its beginning, buy, spot its end and sell. However this ideal almost never happens, except by luck.
What exactly is a trend?
1. An uptrend or upward trend occurs when prices reach higher highs and higher lows.
2. A downtrend or downward trend is the opposite: when prices reach lower lows and lower highs.
3. A sideways or flat trend occurs when prices trade in a range without significant upward or downward movement.
From the investor/trader’s perspective, a trend is a directional movement of prices that remains in effect long enough to be identified and still be profitable.
The most popular method amongst traders to identify a trend is looking at a graph of prices for extreme points, tops & bottoms and to draw lines between these extreme points. These lines are called trend lines . By drawing lines between tops and bottoms we get a „feeling” of the direction of price movement, rate of change of movement, and also its limits. When those limits are broken, they can warn us that the trend might be changing.
Another method for the study of trends are the moving averages which smooth out and reduce the effect of smaller trends within longer trends.
The number of trend lengths is unlimited. The ability for trends to act similarly over different periods is called fractal nature . When we say that the trends are fractal in nature we mean that in any period we look at we see trends with similar characteristics and patterns as each other. The trend length of interest is determined solely by the trader’s period of interest . This doesn’t mean that different trend lengths should be ignored. Because shorter trends make up longer trends, any analysis of a period must include analysis of longer and shorter trends around it.
Trends are determined by supply and demand.
As in all markets, whether apples, oil or used car components the economic principle of interaction between supply and demand determines prices in trading markets. Each buyer bids for a certain quantity at a certain price and each seller asks for a certain quantity at a certain price. When the buyer and seller agree and transact, they establish a price for that instant in time, whatever the reasons might be for the buyer wanting to buy and the seller wanting to sell.
The technical analyst, therefore, watches the price movement and the rate of change of prices and doesn’t concern himself/herself with the reasons of the transactions because most times they are indeterminable. The number of players and the number of different reasons for their participation in supply and demand is close to infinite. Thus, for the technical analyst, it is futile to analyze the components of supply and demand except through the prices it creates.
Furthermore, when someone invests or trades the price is what determines profit or loss, not corporate earnings or Federal Reserve policy. The bottom line is that the price is what determines success and fortunately, for whatever reason, prices tend to trend. .
Trade with care.
If you like our content, please feel free to support our page with a like, comment & subscribe for future educational ideas and trading setups.
How To Correctly Draw TrendlinesWelcome Traders!
In today's trading episode, you will learn how to correctly identify and draw ascending and descending trendlines. Knowing how to identify these lines can set you up for great trade opportunities as shown in this video.
Take time to practice what you learned in today's video.
Until next time, have fun, and trade confident :)
How To Confirm An Uptrend Or DowntrendWelcome Traders!
In today's trading episode, you will learn how to identify a confirmed uptrend or downtrend. There are only two elements to define these chart patterns and that's what you'll learn about today.
Take time to practice what you learned in today's video.
Until next time, have fun, and trade confident :)
Trend Channel Trading GuideHello, dear subscribers!
Today we are going to discuss a very important topic of the trend trading.
The trend channel is the most reliable tool of the trading during the trends.
Here is an example of the ascending trend channel. For novice traders it is recommended to execute trades only in the direction of a trend.
First of all we should determine the trend channel. The white part of a channel is the formation phase. Here we can find multiple bounces off the lower and upper channel's bands. As a result these band are defined.
The green part of a channel corresponds to the trading time. Let's consider an example of long positions execution. We can do it when the price bounced off the lower band. For the take profit level defining we recommend to use the significant resistance level, like a green line on the chart.
We should be conscious about the potential trend channel's breakout (red point). The breakouts can be fake, but if the price faced with the rejection (red area) for the attempts to re-enter the channel it can be the sign of the potential trend reverse, as we can see at this example.
We will continue this topic with other examples of trend channel if you are interested in it.
DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions.
Bearish Gartley Pattern - The Warning SignHello, dear subscribers!
Let's consider the most common bearish sign which can be founded on the market - the bearish Gartley formation.
This pattern takes place when there was a huge dump like from point X to point A. After that we have the small bounce from A to B, but the decline continue from B to C. There is a massive growth almost to the the X point level (see point D) at the end of this price action.
It seems that the downtrend is over and bulls dominate again. We can see two signs of the new uptrend beginning: the higher lows (point C is higher than A) and highs (point D is higher than B).
Here is a big danger now. Until the price is not reached the X point level, the bearish Gartley pattern formation can play. If the Gartley pattern have approximately the same characteristics as numbers on the chart there is the high probability of price dump to the price level between points A and C.
Be very careful when you analyze the trend reverse opportunity, this bearish sign can take place.
DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions.