Category: Trends

Trend Direction
Trends, , ,

Understanding the Timeframe and Trend Direction

Understanding the Timeframe and Trend Direction : There are students asking in the Instant FX Gains chat room about the current trend for a particular currency pair. Instead, I answered with another question, “According to the last 5 minutes, 5 hours, 5 days or 5 weeks?” Some traders may not realize that different trends exist in different time frames.

The question of what kind of trend exists cannot be separated from the time frame in which a trend is located. After all, trends are used to determine the relative direction of prices in the market over different time periods.

There are three types of trends when it comes to measuring time:
1. Primary (long term),
2. Medium (medium term) and
3. Short term.

This is discussed in more detail below.

1. Primary trends Primary trends last the longest, and their lifespan can range from eight months to two years. These …

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Plan Trades With Basic
Trends

Plan Trades With Basic Trend Patterns

Plan Trades With Basic Trend Patterns : The basic reason for looking at a price chart is to determine the trend. At a quick glance, we can see whether the market is moving up or down. However, few realize that the real trend is determined by the pattern of rising and declining moves. It is the determination of the ‘real’ trend that provides the information needed in identifying persistent moves.

Why is it important to identify ‘persistent’ moves or trends? Because it is these types of moves that provide the best opportunities for profit. If the trader/investor focused on just the ‘meatier’ parts of market moves, trades would only be taken in the direction of these ‘real’ trends, and the potential for profit would be much higher than opposing the trend.

The basic identifying pattern for trends requires the identifying of Swings.

When price bars are formed with higher highs, …

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Are You Following the
Trends

Dear Investor, Are You a Trend-Following Material?

Dear Investor, Are You a Trend-Following Material?

Yes, We Can’t! Or Can We?

Just as there is a big difference between theory & practice, reading trading books & trading the markets is not the same thing. Otherwise, just reading a good investment book will instantly put a lot of money into our pockets.

Similarly – there is a huge difference between who we want to be & who we really are, otherwise we would live in a much better world.

Just as the market is discounting everything, in trading who we are is discounting who we want.

The market is not an environment for guessing.

You can’t predict the market, and you can’t control it.

But you can control yourself, and for the most part, by knowing how you function, you can predict your actions fairly accurately. Besides, no one else can do this better for you than yourself. This …

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Trend Trading Golden
Trends

Trend Trading Golden Rule

Trend Trading Golden Rule : Many investors at one time or another have heard of trend trading but most don’t really know what it means or how to get started. In the great words of Wikipedia, “Trend-following is an investment strategy that takes advantage of long-term moves that seem to play out in various markets” but isn’t that what most long-term investors strive for?

What Exactly Makes an Investment Strategy a Trend Trading Strategy?

By definition, when you are a trend trader, you follow a trading system and you stick with it for as long as your system requires. It’s quite simple, really: you create or invent a system that you believe will work over a long period of time. You get to the point of trusting the system because you, or whoever has built the system, test and retest the numbers until you reach a point where you can …

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