Higher Highs/ Lows and Lower Highs/ Lows

Throughout the next few posts I'm going to illustrate my viewpoint of how the forex markets moves.

Lets take a look at this picture from left to right. I'f I can garner some intelligent observation I'll go a bit further.

The biggest question a trader should ask himself/ herself is how do I determine when a trend changes, in real time. When your able to accomplish this task you can then position yourself with the new trend and profit from it.

Nobody has any oberserations for what they see?

I can see a series of Lower High's and Lower Low's, the way i drew the lines are more focused on the biger waves but there is a series of waves within each biger wave if that makes any sense.

Regards
Dane

You can also look at in this way, and this way indicates that the current trend is up??

Regards
Dane

Ok so looking at your illustration, how could you have determined that the change in trend was legitimate? I want to hear your opinion

Your question should be which trend?

The dominant trend, weekly.
The now trend, daily.

We'll stick to these 2 to simplify things

Well to be honest im not entirely sure...

If it takes out the HH of the previous image then the trend would be very much up, or if it takes out the LH of the first image then the trend would also be up. but if it takes out the HL of the previous image then trend stays down.

Cheers
Dane

A violation of the weekly trend is going to be significant and dosent happen often.

A violation of the daily trend is only signifcant when it corrects itself in the direction of the weekly

Well how about this then, if you see in the image that price action has been bouncing off of that support line and then next it made a higher low without coming to the support line, so i would say that your daily trend currently is up, but untill the bigger wave's LH gets taken out the weekly is still down... or something like that, i feel like im confusing myself now

Your looking at this picture through a bifocal of diagonal lines, not horizontal lines.

This is why i lke to use fundamentals/economics to determine direction

I very much interested to learn this, the fundamentals. Can you share how you use fundamentals/economics to identify change of trend? I am still learning, so your info may be helpful for me and others.

Thanks,

Erikte279 you have started an interesting topic here and im very interested in your views and how you use this to help you in your trading!!

Looking forward to what you can teach and its a shame that this thread hasn't got much attention yet.

Cheers
Dane