How do you Define Identify and Follow Trend?

Hello,

It would be of very good use to traders community to know

*** What is a Trend ?

*** How to indentify Trend ?

*** How to follow ?

*** When to know the Trend is changing ?

So of you may have answers based on Price action or some based on Technical Analysis. Still if you do not mind sharing, please do enlighten.

Thanks
Ansi

Nanningbob ver. 10.0 will be posted this weekend and will answer those questions for you. It will also define when the market is ranging. Of course it wont be 100% fool proof but I think you will find it very useful.

What is a trend: A trend is overall current direction of the market on a particular time frame.

How to identify: The first thing I do is to pull up a line chart with the 5 & 10 ema attached to it. This clears out all the noise and you can easily see the overall direction. Then I go to a OHLC chart and mark major swing High & Lows and make sure we are still seeing HH or LL in the market.

If you have a hard time still figuring it out, move to another pair that is clear.

How to follow: Look at a TF higher than the one I am currently trading. Determine the trend. when the Higher TF and your trading TF match look for pull backs and enter.

How to know when the trend is changing : I look for price to hit a major area of supply or demand on a higher time frame. When this happens I look for a reversal and start to expect a new trend. If it doesn't reverse I look for it to break through the zone and give me a rebound and continuation. Then I trade accordingly

once again, if I can't see it clearly, I move to the next pair to trade

Everything you need has already been discussed and described umpteen times over if you bother to do a little searching.

When you do your research you will face two problems:

1. The gems are smothered under piles of crap.There are some very useful threads here, that you can learn from, but there is way more rubbish.
2. Even the good threads can slowly get poisoned with useless crap. If you have a thread with thousands of posts, good luck in trying to figure out where the meat is. Sometimes it's easy to find, sometimes not. Usually the good stuff is early on in the thread and the signal soon becomes chit chat, ego, and noise.

Try this post for some useful info. I think this is one of the classics here, but decide for yourself.

Trends - books have been written about this, but the usual definition is "higher highs with higher lows or v.v. lower highs with lower lows". Choose your time frame of interest and then take a look what's going on at the longer time frames too.

It's called Stikky Stock Charts. If you're a good searcher you can find the book online for free. It's a quick and easy read with excercises. I used it to learn to draw trendlines to trade the forex market.

Happy Trading!

Here's a definition from WRBtrader.

http://www.elitetrader.com/vb/showth...39#post3238939