We use to hear people saying "Trade with the trend and not against it", but how many traders on earth are actually trade with the trend ? First thing is how traders determine what is the current trend ? When market is choppy or doing correction , what will those so called "trend follower" do ? I have heard some traders use moving average lines to find out the current trend , this might be a good answer but what if the market choppy ? Some will be using Stochastic Ocillator . Fine , i create this thread is for all the traders to discuss the best way to find out What is the current trend. Just feel free to post out your reply.
Even attempting to trade with the trend is wise because, if you get it right then the extensions with the trend will be longer than the retracements. This means you:
- get a bigger move in each wave/thrust with the trend.
- your timing doesn't have to be as good because, if you fail to get out on the first thrust the retracement probably won't get all the way back to your stop.
There are trends on different timeframes. You want to trade with your timeframe trend and if you can the trend of the timeframe above for maximum forgiveness and "extension advantage."
Easy ways to spot them are recognizing progressive moves through support and resistance (see the attached pring pdf I found elsewhere on this site) or by putting a couple of mas on and going "its above so the trend is probably up."
There is no substitute for screen time
- get a bigger move in each wave/thrust with the trend.
- your timing doesn't have to be as good because, if you fail to get out on the first thrust the retracement probably won't get all the way back to your stop.
There are trends on different timeframes. You want to trade with your timeframe trend and if you can the trend of the timeframe above for maximum forgiveness and "extension advantage."
Easy ways to spot them are recognizing progressive moves through support and resistance (see the attached pring pdf I found elsewhere on this site) or by putting a couple of mas on and going "its above so the trend is probably up."
There is no substitute for screen time
- #3
- Nov 17, 2007 10:01pm Nov 17, 2007 10:01pm
- | Joined May 2006 | Status: Trade Towards the 5 ema | 2,881 Posts
- #4
- Nov 17, 2007 10:54pm Nov 17, 2007 10:54pm
- | Joined Aug 2007 | Status: Trader | 1,196 Posts
Check Mate GAME OVER
- #5
- Nov 17, 2007 11:00pm Nov 17, 2007 11:00pm
- | Joined Aug 2007 | Status: Trader | 1,196 Posts
Check Mate GAME OVER
Even attempting to trade with the trend is wise because, if you get it right then the extensions with the trend will be longer than the retracements. This means you:
- get a bigger move in each wave/thrust with the trend.
- your timing doesn't have to be as good because, if you fail to get out on the first thrust the retracement probably won't get all the way back to your stop.
There are trends on different timeframes. You want to trade with your timeframe trend and if you can the trend of the timeframe above for maximum forgiveness and "extension advantage."
Easy ways to spot them are recognizing progressive moves through support and resistance (see the attached pring pdf I found elsewhere on this site) or by putting a couple of mas on and going "its above so the trend is probably up."
There is no substitute for screen time
so even get stopped out, just re-enter and when main trend resumes you'll get back the loss........and more.
- #7
- Edited 6:37am Nov 18, 2007 6:22am | Edited 6:37am
- Joined May 2005 | Status: I am not your bro | 1,302 Posts
My definitions of a trend:
-- I like to use the Martin Pring guidelines that Kiwi_trader pointed out.
-- A string of bars, where most are C > prev C, or C > O for uptrend (opposite for downtrend). Should be obvious when using candlesticks.
-- A series of MAs that sort out into "perfect order" (pointed out by Tiki_Trader)
-- And my favorite: if the price starts in the lower left side of the screen, and ends to the upper right: uptrend; if price starts in upper left side of screen and ends to the lower right: downtrend.
I trade with nothing but an MA ribbon (examples are LinuxTroll's rainbow and Guppy's MMA), and putting S/R lines on obvious peaks and troughs, and round numbers (ie: ***50, ***00). There's really no need to make things more complicated. I've found oscillators to be useless, as they're usually no more than the difference between two or more MAs.
-- I like to use the Martin Pring guidelines that Kiwi_trader pointed out.
-- A string of bars, where most are C > prev C, or C > O for uptrend (opposite for downtrend). Should be obvious when using candlesticks.
-- A series of MAs that sort out into "perfect order" (pointed out by Tiki_Trader)
-- And my favorite: if the price starts in the lower left side of the screen, and ends to the upper right: uptrend; if price starts in upper left side of screen and ends to the lower right: downtrend.
I trade with nothing but an MA ribbon (examples are LinuxTroll's rainbow and Guppy's MMA), and putting S/R lines on obvious peaks and troughs, and round numbers (ie: ***50, ***00). There's really no need to make things more complicated. I've found oscillators to be useless, as they're usually no more than the difference between two or more MAs.
- #9
- Nov 18, 2007 3:55pm Nov 18, 2007 3:55pm
Easy ways to spot them are recognizing progressive moves through support and resistance (see the attached pring pdf I found elsewhere on this site) or by putting a couple of mas on and going "its above so the trend is probably up." There is no substitute for screen time
My definitions of a trend:
-- And my favorite: if the price starts in the lower left side of the screen, and ends to the upper right: uptrend; if price starts in upper left side of screen and ends to the lower right: downtrend.
On the 15th of Nov GBP/USD started on the left hand and ended on the right hand.
Great this mean Friday should be continue with the downward trend.
But it did not!
Now look.......Friday partly started on the right hand sided got
stalled at the center of the screen and finished at the right hand side.
What will Monday be?
- #10
- Nov 18, 2007 4:12pm Nov 18, 2007 4:12pm
This caught my attention:
On the 15th of Nov GBP/USD started on the left hand and ended on the right hand.
Great this mean Friday should be continue with the downward trend.
But it did not!
Now look.......Friday partly started on the right hand sided got
stalled at the center of the screen and finished at the right hand side.
What will Monday be?
Trainee at UBS Investment Banking
- #12
- Nov 18, 2007 4:31pm Nov 18, 2007 4:31pm
- Joined May 2005 | Status: I am not your bro | 1,302 Posts
- #14
- Edited 11:15pm Mar 10, 2008 10:55pm | Edited 11:15pm
- | Joined Nov 2006 | Status: Trader | 1,143 Posts
24 hours in a day – 24 bottles of beer in a case – Coincidence? I think not
- #15
- Mar 10, 2008 11:02pm Mar 10, 2008 11:02pm
- Joined Sep 2006 | Status: Chasing Trends | 2,339 Posts
Market Up Trend - A series of distinct peaks which form higher highs (HH) and distinct valleys which form higher lows (HL).
Market Down Trend - A series of distinct peaks which form lower highs (LH) and disctinct valleys which form (LL).
Choppy Market - A series of distinct peaks and valleys which fail to break previously established highs or lows.
Non-moving Market - It's the weekend. Stop watching your charts.
The definition of a trend requires both the peak and the valley to be in the correct sequence. If either is broken then the market moves to a choppy condition until the complete definiton is re-established in either direction. The actual reversal often looks like a Head & Shoulders pattern. The right shoulder is simply the first failure to continue the previous trend. You don't use moving averages to identify a H&S, why would you need one to identify the market leading up to one?
You are more than welcome to add any number of lagging indicators to your chart in an effort to delay your interpretation of what price itself is trying to tell you.
- #17
- Mar 11, 2008 9:05am Mar 11, 2008 9:05am
- | Joined Feb 2008 | Status: Live long and have fun :) | 1,386 Posts
Go to Jacko's House of pleasure and pain in the Journals forum.
On the path to Enrichment.
- #19
- Apr 17, 2008 1:31pm Apr 17, 2008 1:31pm
- Joined May 2005 | Status: I am not your bro | 1,302 Posts
Take it from a moving average line trend reader it is an effective way to determine the trend. THe key to this is when it is choppy that is a trend too. But One I refuse to trade. Simple enough I don't have to be in the market to be trading successfully.
: Let us know when you detect that the USD has started dropping.
