- The first form is trending. Also known as Trend.
- The second form of sideways or oscillation in a certain area.
- The third form is trendless. This is the most common form and also the one that kills the most traders. It does not have Trend like form 1 but also does not sideway like form 2.
Pattern with Trend it will run straight in one direction, can be up or down. Sometimes it runs in a straight line if the trend is strong, sometimes it runs parabolic if the trend is strong, or zigzag if it's just a trend.
https://traderviet.com/attachments/u...-6-png.194689/
The sideways way is that it keeps going up a certain resistance level, then going down again, down to a support level, it goes up again. Just so it fluctuates in a certain price range.
https://traderviet.com/attachments/u...42-png.194688/
The third form is without Trend. In this form the price moves up in one direction, then falls dramatically again, it does not go up or down clearly.
https://traderviet.com/attachments/u...-7-png.194690/
According to my observational experience 70% of the time the price fluctuates in form 3, 10% of the time it fluctuates in form 2, only about 20% of the time it moves in the form 1.
In my experience, Trend trading is the safest form, the highest winrate, the Risk Reward is also the best.
But Trend also comes in several forms. You must be able to answer the following two difficult questions to trade according to Trend. Not hard to chew, but extremely hard to chew.
- Question number one: Is the market a trend?
- Question number one: Trend in what form (line, parabola, or zigzag).
These two questions are the best value for money, you can answer these two questions and you will find the EDGE in trading.
My indicator help you answer two question above.