Ad Clicks : Ad Views : Ad Clicks : Ad Views : Ad Clicks : Ad Views :
Forex review blog for you

My Forex review blog for you

img

How to Identify Trends Like a Pro Without Second Guessing Yourself

/
/
/
46 Views
How To Identify Trends Like A Pro Without Second Guessing Yourself


Last Updated on

Does this sound like you?

You’re looking at the trends across different timeframes, hoping it points in the same direction. 

Almost like waiting for the planets to align for a once-in-a-lifetime celestial event.

On one timeframe, it’s an uptrend while on the other, it’s in a downtrend. 

So, what do you do?

Well that’s what you’ll discover in today’s episode.

You’ll learn:

  • The secret to identifying trends like a pro without second-guessing yourself
  • Common mistakes traders make when identifying the trend and how to avoid it

So listen to it right now…

Resources

The Trend Trading Strategy Guide

How to use multiple timeframes and improve your trading entries

The Price Action Trading Strategy Guide

Transcript

Hey, hey, what’s up my friend?

In today’s episode, I want to talk about how to identify trends like a pro. 

I remember in my early years of trading, during my first year of trading where I just started trading Forex, it was really cool. You can trade the market across so many timeframes, 5-Minutes, 15-Minutes, 30-Minutes, 4-Hour, Daily, Weekly, etc.

So there I was right in front of my terminal trading the Forex market. 

I was on the 5-Minutes timeframe and I noticed the market is in an uptrend. And in an uptrend, I should be buying. 

That was where I decided I had to seek a bit of additional confirmation. 

So I click on the Daily timeframe to make sure the trend is similar.

But I was shocked when I saw the Daily timeframe in a downtrend. 

It was one of my first experiences in trying to trade with the trend, and I was like:

“The 5-Minutes timeframe is in an uptrend, the Daily is in a downtrend?”

“So should I be buying or should I be selling?”

I was really confused for the longest period of time. 

I was trying to define the trend, trying to use multiple timeframe analysis and stuff like that. 

So in today’s episode, I just want to share with you this simple technique, to help you identify the trend so you don’t get confused like me back then. 

Let’s get started.

1. Define your trading timeframe (and stick to it)

Here’s the thing:

If you are a longer-term trader trading off the Daily timeframe, then you want to define the trend on the Daily timeframe. 

This means the trend on the 5-Minutes, 30-Minutes, 1-Hour timeframe is irrelevant to you. 

It’s noise to you because it is not within your trading timeframe. 

Now let’s say you’re a short-term trader, you trade off the 15-Minutes timeframe. 

This means the higher timeframe, like the Daily, the Weekly, the Monthly won’t be relevant to you because you are primarily a short-term trader. 

You’re just trading the trend which is happening right now. 

Whatever the long-term trend is right now is none of your concern, because by that time you would have entered and exited the trade many times. 

So the first thing you need to do is to define your trading timeframe. 

Next…

2. Always have the same number of bars on your chart

Let’s say you’re trading off the Daily timeframe.

Then on your Daily timeframe, you want to always be having the same number of bars on your chart. 

I usually have about 300 bars on my chart. I’ll zoom out the charts a little so there’ll be about 300 candles on the chart.

You want to be consistent with this because if sometimes you have 50 bars on your chart while other times you have 200 bars on your chart, you’ll see different types of trends. 

If you have only 50 bars on your chart, it’ll show you a different message compared to you having 200 bars on the chart.

One will show you the big picture and one will just show you the tiny micro-vision of what’s going on right now.

After you identified a trend, have at least 200 bars on your chart to see the bird’s eye view of what’s going on in the market.

3. Observe how the price action plays out

You want to look at the price action and ask yourself…

“Is the price making a series of higher highs and higher lows or is it making a series of lower highs and lower lows? Or is it just contained within the range?”

If you see the market is making a series of higher highs and lows, then you can conclude that on this particular timeframe, maybe the Daily timeframe, the trend is up and you want to be buying. 

Or if you see the highs and lows of the price at around the same level, then you can conclude that this market on this timeframe, is in a range so you can either buy or sell.

If you follow this technique, you’ll never get confused about whether you should be buying or selling ever again. 

Alright?

So just a quick recap. 

Recap

  • Define your trading time frame
  • Have similar number of bars on your chart each and every time (at least 200 bars)
  • Observed the price action – is it hitting higher or low over time, or is it in a range 

Simple?

With that said, I have come towards the end of today’s episode and I’ll talk to you soon.





Source link

  • Facebook
  • Twitter
  • Google+
  • Linkedin
  • Pinterest

Leave a Comment

Your email address will not be published. Required fields are marked *

This div height required for enabling the sticky sidebar