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How to Identify Major Movement in the Market

  • Post #1
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  • First Post: Dec 23, 2008 9:32pm Dec 23, 2008 9:32pm
Dear All,

I would need some advise here, how do I identify a major movement in the market, especially EUR/USD.

Your advise is highly appreciated!

Many thanks,
When price breaks out of it's range, or moves outside of the previous day's high/low and doesn't immediately retrace back...
Simple, if the price changed and didn't turn around, there's a major movement.
How do we know the price changes?
Go on the daily EUR/USD chart, add 200 simple moving average and observe
1. when price above we are clearly in an uptrend.
2. when price below we are clearly in a downtrend.

Consider 200 SMA the line that separates bullish territory from bearish territory. Works on every time frame btw.
Quote
How do we know the price changes?

You need to have a broker that provides some kind of basic charting service. From there you can easily determine if price has changed.
  • Post #7
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  • Edited 9:40pm Dec 24, 2008 9:22pm | Edited 9:40pm
Thanks, I want to get this in my mind, when the Moving Average Line is above the candlestick then does this mean is downtrend and if the Moving Average is below the candlestick does this means an uptrend?

Also, how do we know an end of trending?

Sorry I'm a bit confused...

Quoting Goozman
Go on the daily EUR/USD chart, add 200 simple moving average and observe
1. when price above we are clearly in an uptrend.
2. when price below we are clearly in a downtrend.

Consider 200 SMA the line that separates bullish territory from bearish territory. Works on every time frame btw.
Yes that's right. Also:
When price crosses the 200 moving average several times in a short period of time you will get a range, trade only when price breaks out of that range.

Another basic and crucial piece of info for trend trading that many newbies forget to apply all the time to their technical analysis is that an uptrend is formed by higher highs and higher lows, and when price fails to continue with this pattern, you should watch out for a reversal. Couple this with the information I gave you above about 200 simple moving average and you have a clear way to distinguish trends on all time frames very easily.

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  • Post #9
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  • Last Post: Dec 29, 2008 9:02pm Dec 29, 2008 9:02pm
Hi Goozman,

Thanks for the guiding.

I have a few questions here, if the price is moving near to MA200, can be trade? I'm confused.... By looking at the 1h trend at MA200 and the trend cross pass the MA200 what does it means? To trade or not to trade?

I'm not familiar with the 1h MA200, could you be kind enough to guide me please.....

Thanks,

Quoting Goozman
Yes that's right. Also:
When price crosses the 200 moving average several times in a short period of time you will get a range, trade only when price breaks out of that range.

Another basic and crucial piece of info for trend trading that many newbies forget to apply all the time to their technical analysis is that an uptrend is formed by higher highs and higher lows, and when price fails to continue with this pattern, you should watch out for a reversal. Couple this with the information I gave you above about 200 simple moving average and you...
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