how can I read the main trend?

m1 down
m5 up
m15 down
m30 down
h1 up
h4 down
d1 down
w1 down
mn up
trade on m1 so how do I read the main trend? iam so confused: /

First of all, I would replace 'main' trend with 'relevant' trend. Obviously as you pointed out, there are different trends occurring on different timeframes, which one of these is most relevant to how you trade?

As you trade the M1 chart, depending on how long you hold trades for, I would say the 15 and 30M, or even H1 charts are where you would want to define the trend you are trying to trade. If you only hold trades for a few minutes, the direction of the trend over the past few months is largely irrelevant, and the same would apply for any time frame longer than what is relevant to your system.

In my opinion: trade only when 5M and 15M are both up or both down, and trade only in that direction.

most relevant hmm .. If the graph on the chart starts in the bottom
left hand corner and ends in the top right hand corner it is a uptrend (maintrend) but M5 sometimes do pull back and when it does
that the m1 going down and maybe breaking my upptrend on m1,
and what happningen if h1 do a pullback
should I wait until m15 and m30, H1 are uptrends?
sorry for my english =)

There's an uptrend if there are upper higs and upper lows.

There's a downtrend if there are lower highs and lower lows.

In other cases it's a consolidation, a pause in the trend waiting for another to start. In my opinion trading in a consolidation requires much more experience, so don't do it for now.

Don't watch too many timeframe, your brain will explode. In my opinion if you trade on 1M look only at 5M and 15M.

There some easy way to spot a trend. One of my favourite is to use 50 sma and 200 sma. When the price is above them, there's an uptrend. When it's below them, there's a downtrend.

EXAMPLE (I repeat: only an example):

You look at 5M and 15M. When both are above their 50 SMA and 200 SMA, you wait for a buy signal on the 1M chart, that can be the crossover of MACD, or RSI that cross its 50 level, or a positive divergence on one of these indicators. This could be a good start to train.

This is the real question to ask yourself.

If you hold a trade for 20 minutes do you need a 1 tick chart or a weekly chart to monitor your position? Probably not.

thanks pride!! I will immediately begin to practice
like now on eur/usd perfect i ghess =)

Those are good questions, but without more knowledge of how you trade, I think you are in the best position to determine what to do-- there is no standard answer. One person may only trade when the direction of the trend on the shorter timeframe (1M in your case) matches up with the direction of the trend in the longer timeframe. Another person may wait to buy or sell divergence between the two timeframes (that is, they may wait for pullbacks on the lower timeframe and fade the market to get back in line with the longer time frame).

edit: whoops... forums are weird, that was meant for like 5 posts ago

Another advice: most new traders want to use very short term chart because it seems that with them you can do more money and faster. I thought this too at the beginning. But then I found that trading in chart like the 1M is very difficult and sometimes too random. This is only my experience, but a lot of people here thinks the same way.

So my advice is to pass to 5M-15M-1H set. Much less stress, much less noise, more time to think, that is very important for a beginner.

The main trend could be any timeframe you choose, based on your trading plan/strategy. But, most Insitutional traders consider the Daily and Weekly Chart as the main trend. I would personally use the Daily chart in considering the main trend. Use that trend in determining the direction you will need to trade on the lower timeframes.

Example: A Bull trend has been established on the Daily chart, so now, you would trade say, the 5Min chart and only in the direction of the Major trend you'd established from the Daily chart.

Hi d0MiN077,


There are some excellent answers in the above posts.

The first issue is to establish what time frame YOU are trading.

It appears that you are trading the 1M charts (you obviously like excitement rather than profits...LOL)

If you set your charts to 300 periods, then you only ever need to look at the 1M chart...nothing else .... because you have 300 minutes (thats 5 hours) of information on your charts. The 300 periods is more than sufficient to show any trend in relation to your trading time period.

So in answer to your question, determine the time frame you want to trade...build your chart to 300 periods of that time frame ...and only look at that chart.

PS When you are trading less than 4H you are not trading a trend...you are trading the "noise" and all indicators become largely irrelevant.

.
Jacko

Awesome reply by Jacko!

Thanks to him for that!

If he happens in again a question:

4hr bars X 300 is a recommended window?

thank you all for the answers!

i can never argue with Jacko, but if you come over to my thread <MP -- 350 pips daily and all the ice cream you can eat> you will see how I teach trend trading, which is not really different than Jacko (just HOW different is ONE trend anyway ?) but has many ways of SHOWING in a graphic manner, the present major and minor trends involved.

NOT IN ANY WAY TO TAKE AWAY FROM JACKO, as we are so similar in most ways, but the principles are well laid out and its become one heck of a popular thread

enjoy and trade well

mp

You have started it the right way...spoting the trend.
Look at it this way. Imagine the infantry on the field , their view is limited. Imagine also the same men in an air plane at several thousand feet looking down , a broader view is gotten. Now, you need to take your nose away from the market and look at it from a distance. At that, you will spot the trend easily. Higher time frame helps most. 1h, 4hr, daily chart. Try it. IMO