Consider one of the simplest trending strategies that can be used for intraday trading. Despite its simplicity, this is one of the most effective ways to trade.
In fact, it can be used on any time frame, since the setups on the minute, hour and daily charts look the same. It is not difficult to understand how this strategy works: we earn when there is a trend movement; when it is not there, we remain outside the market. The best way learn it - .
Practice shows that using this strategy for intraday trading can give 3-4 correct trades per day (sometimes it can be more or less depending on market conditions). Sometimes there are range days. In this case, we will not receive signals to open positions (or there will be very few of them), since the intraday reversal High and Low will not be broken, which is evidence of the absence of a trend movement. You have to be patient and collected. Trade only when the market really gives you the opportunity.
Trend trading in the first half of the trading session
Let's see what the beginning might look like. trading session and the first transactions for this strategy:
The day starts as usual with erratic movements, but after about an hour, today's High or Low breaks through.
Now that the Low has been broken, a downtrend line can be drawn. We will look for the possibility of opening a deal in short.
After that, we are waiting for a rollback to the trend line
Please note that the trend line is speculative and has no physical meaning. The main thing in this situation is that during the downward movement, all subsequent reversal Highs form below the previous Highs, and the Lows are updated. If these conditions are met, then we have the correct downtrend. For an uptrend, everything should be the other way around.
We go short when the pullback ends. The signal is the breaking of the low of the green bar or cluster of bars (i.e. the price falls below the low of the green bar or cluster of green bars after it has approached the trend line).
After the Low is broken, a downtrend begins.
We enter short on a rollback - on breaking through the Low of the green bar
Second arrow - similar
The stop is quite short - we place it directly above the last reversal High (in a downtrend). In the first trade (the first red arrow on the chart), High is 117.05. If the price rolls back above this level, you need to exit. The entry point is at 116.91-116.90, that is, immediately below the Low level of the rising bar that has approached the trend line. There is no need to wait for the bar to close, because it depends only on the selected timeframe. You only need to look at the price in real time. Thus, we got a stop of about 15 cents.
The target is the last low minus a stop for a downtrend or the last low plus a stop for an uptrend. In this case, the previous low was at 116.66. Since we have a downtrend on the chart, we can assume that this Low will be broken to some depth. With this strategy, we assume that it will be broken by the value (at least) of our stop. Therefore, our goal in this case is: 116.66-0.15=116.51. We place a limit order to take profit at this level. As you can see, it works. The profit exceeded the risk by 2.5 times.
The price sets another reversal Low, then rolls back up to the trend line. We do the same again, opening the second trade. High - at 116.42, put a stop-loss right behind it. The entry point is 116.27. The target is 116.11-0.15 = 115.96 (the stop is not necessarily 15 cents, in this case it's just a coincidence). This time, the reward to risk ratio is 2:1.
Usually on intraday trend you can take 2-3 deals. If the trend is strong, then more. When the market continues to form lower lows and highs, a couple of additional positions can be entered. But this rarely happens, more often the trend breaks with a deep correction.
If the traffic looks too jerky, it's best not to enter. This often happens between 11 and 13 New York time. This does not mean that there are no good movements, just that the probability of making the described transactions decreases.
Trend trading in the second half of the trading session
Now let's look at the work on this strategy in the afternoon. The horizontal line on the chart marks the Low of the current day. After lunch, this Low breaks (around 115.50). Let's repeat the process:
Now, after breaking through the main Low, you can draw a trend line (before that, the market moved in a horizontal corridor - a range).
We expect a rollback to the already drawn trend line. Be patient: it is better to miss a trade than to enter too early and get too big stop loss.
We enter short using the criteria described above.
The green arrow is an optional trade.
The risk is too great due to the large reversal bar
The chart shows an "optional" long trade. The price formed a rising low and a rising high, which made it possible to draw an uptrend line. On the next correction, a rising Low appears, giving us a potential entry opportunity. But at the pivot point, the bars are too big. If you look closely at the chart, you can see that the stop would be between 25 and 35 cents (it is difficult to determine the exact entry point). Such a stop is unacceptably large, and the entry point is "dirty", so it is better to refuse such a trade. In addition, at that time such a deal would be contrary to the general "mood" of the day. If the risk is too high in relation to the expected profit, it is also not worth opening a position.
Indeed, the market does not go up, but again draws a falling High and a falling Low. Another potential short entry is marked with a red arrow on the chart. Target level has been reached. But in fact, this deal does not correspond to the strategy in question. The fact is that during this period of time the market is not in a trend movement, but in a transitional state. Try to find the difference between this transaction and the previous ones. If you succeeded, then you understood the concept of this strategy. Our correct input appears on the next wave, but it leads to a loss. It was necessary to enter on the rollback between the second red and the first green arrows, but we would have been knocked out by the stop.
After that, SPY forms a series of rising lows and highs, which gives us 4 points to go long with a stop around 15 cents and reasonable profit potential. It is rare when a movement allows you to make 4 transactions. So don't count on it. After two transactions, the chances of success begin to decline. The probability of taking a loss increases as the trend develops. But if the market gives, you need to trade..
Be aware of everyone important events United Traders - subscribe to our
Trend trading is one of the most effective forex trading systems. However, the popular and tired expression “Trend is your friend”, which theoretically does not cause any objections, is not always possible to implement in trading practice, especially for novice traders, and these trading strategies, especially identifying signals to enter a position, require a certain level of knowledge.
What should be the approach to trend trading?
First and most importantly, it is necessary to timely and correctly identify the directional movement on the chart. It is advisable to use a comprehensive market analysis and a certain set of tools technical analysis(graphical analysis, data of technical indicators).
It is not enough just to draw a trend line. You must not only state the presence of a directional movement in the market, but determine the nature (long, medium, short-term trend), phase, direction, strength, nature of interaction with critical levels support / resistance, the presence of graphical figures and so on. It is very important to determine the directional movement at different time intervals and their relationship.
After identifying a directional move, a trader needs to focus on signals to enter trading position. Entry signals can be very different, depending on the trading system used. It must be clearly understood that directional movement is always determined on longer time frames, and trading is carried out on shorter time periods, but always in the direction of the prevailing directional movement. That is, if you trade intraday, the trend on the daily charts should be taken as the basis.
Main trading systems, signals and market entry points
Trading on pullbacks of directional movement. It is the most commonly used trend trading method. However, trend trading does not mean at all that a trader can enter the market in the direction of the market movement at any arbitrarily chosen point. As you know, the trend never develops in a straight line, but is accompanied by frequent rollbacks (corrections).
Therefore, when trading on the market movement, the best option is to enter the market after a correction, with the obligatory presence of signs of a directional movement recovery, since in practice it is very difficult to determine and distinguish a correction from a trend reversal.
The most effective and simple pullback trading strategy is to buy or sell. financial instrument near the support/resistance level. Moreover, the best option for entering a position is the third touch of the resistance/support lines.
Such a line can be both trend lines drawn by the trader and average moving lines, which are selected individually for a certain trading time interval. For these purposes, you can use both one moving average line and several, receiving additional signals at their location in relation to each other, as well as at their intersections.
Both moving averages and support/resistance levels work well in this strategy, so there is no fundamental difference when using them. Only important point is the selection of the period of moving averages, and they must be selected for each currency pair individually.
It is highly desirable when using such strategies, and there are many of them, to use various technical indicators (RSI, MCAD, oscillators), which allow you to additionally see the end of the trend rollback and the beginning of the price movement recovery in the original direction. Experienced Traders in addition to this, Fibonacci levels, Price Action patterns and candlestick patterns are used.
After entering a trading position, a Stop-loss order is set, which allows the trader to control potential losses. At correct definition directional movement and entry into the market, the position can be maintained for a long time. Or a trader can partially take profits, and leave the rest of the position in the market, counting on a long strong movement.
Entering a trading position when the price extremum is broken
A signal to enter a trading position appears after the rollback is completed when the price reaches and breaks through the level of the previous high/low price (extremum). It is preferable to enter with a pending order with the mandatory installation of stop-loss orders at a distance according to the risk management system you use.
Additionally, in the trading system it is also recommended to use technical analysis tools – moving averages, various technical indicators that give the trader important information about the strength and direction of the trend.
Trading with the trend based on the formed graphic figures of the continuation of the directional movement
The trend movement of the price of a financial instrument in the Forex market periodically loses and receives a new momentum of movement, and the directional movement periodically, for some time, is in a state of market consolidation, while forming various figures for the continuation of the directional movement. These figures include flags, rectangles, wedges, differently directed triangles.
Each of the listed patterns of continuation of the directional movement is strictly specific, both in the process of its formation, and the rules for entering a trend based on it. Therefore, novice traders are required to carefully study these figures and apply them in their trading.
Thus, a trader can successfully trade with the trend using various systems entering a directional movement, as well as combining them, thereby reducing the risk of losses. In practice, the basis of trading should be developed by the trader trading system, configured for a specific time period and a specific financial instrument.
It should also be noted that long-medium-short-term trends can be present on the market at the same time, and the trader needs to decide which of them he trades. Very important for successful trading observance of strict discipline and the ability to wait for the formation of a favorable situation on the market and clear, confirmed signals for entering a position.
Today we have a video for dessert: Microsoft Intensive Training “Investing for an IT Startup”
Today we will talk about trends in binaries. I'll tell you right away - the infa is complicated. It won't be easy for you. When was it easy? It's such a topic. In short, I begin to share my knowledge and experience on this topic. Go!
Most of the strategies used are designed for investors with a certain level of training, ordinary person it will take a long time to understand the principles of their operation.
Meanwhile, any strategy is based on the trend - the direction of the price.
Trend trading with binary options involves the use of dozens of strategies and analysis tools.
One of the rules of professional trading that must not be broken is the rule: do not go against the trend.
It is necessary to be on friendly terms with the trend, trading should be carried out only in the direction of the trend. 
Therefore, among the questions of questions asked by beginners, the question is often found: how to determine the trend in binary options?
Widely used to identify trends two types of tools:
- lines characterizing price movements.
photo - forexspamm.ru - Trend indicators for binary options.
There are two main types of trends: uptrends and downtrends.
- Ascending is a series of increasing max and min values. At the same time, all subsequent ones are located above the previous ones.
- Descending - also series of minimal and maximum values, but each next one is located below the previous one.
For greater visualization of these processes, their schematic designation in the form of trend lines is used.
Particularly effective for correct use turns out to be a strategy that takes into account the movement of the lines of these lines, which are considered one of the main tools of analysis.
They greatly simplify the process of determining the width of the corridor and the direction of price movement.
As I said above, there are two types of lines: ascending (resistance) and descending (support).
The resistance line is located at the top of the price chart and passes through the upper price indicators for the selected time period. It concerns peak values.
The support line is located at the bottom and describes the movement of the minimum price indicators in certain period. It is held between two price lows.
I wrote a lot about these two lines here - - so I recommend reading, it will become clearer using my analytics as an example.
The presence of the possibility of the formation of these lines is an indicator of the existence of a trend that must be taken into account in trading.
To draw a line and use this tool, you must have at least two points - maximum or minimum values, which can be connected by a single line.
There are clear construction rules that also characterize the level of reliability:
- A lot of meaning lies in the degree of inclination. strong slope is an indicator of unreliability.
- More convincing lines drawn by a couple of points. With more points, reliability will decrease, and the probability of breakdowns will increase.
- One should not strive to build in all market conditions, the situation in which all attempts to draw fail means that there is no trend. It follows from this: a situation has developed that is not suitable for the use of the tool.
What I'm talking about today:
Trend options trading with lines
In practice, two methods are actively used, which have fundamental differences:
- Using a line (support or resistance) to exit in the direction of a trend.
- Play with the breakout line, reversing the trend.
Both methods have certain advantages, but you should learn how to use them correctly.
The first method is often perceived by many as simpler. To implement it, a straight line is built along a couple of points.
This method is simple and available for use.
When applying it, it is necessary to take into account: if the price often touches the line, then there is high probability of breakdown. It is possible that it will happen at the next touch!
If the line is sufficiently flat and long, then after its breakdown, in many cases, the trend changes.
When playing for scrap, you should do this:
- wait for touch:
- wait for a rebound;
- after the tick is formed, put an "order buy", "sell stop".
When the price reaches the line, crosses it, you will need to wait for its movement to change in the opposite direction in order to place an order at its maximum point at that moment.
After that, a short period of time will pass before the order is triggered and it will be possible to enter the market.
It is important to wait for that moment to enter. Without doing this, you cannot be completely sure that the testing of the trend line will be of high quality. By waiting until the tick, you will increase the probability of profit by filtering out unnecessary signals.
This technique, at first glance, is perceived as understandable, accessible to practical application, but it has many subjective moments.
A trader may face a number of difficulties.
For example, it is necessary to without fail take into account the angle of inclination of the constructed line. It can be different, which determines the stability of market trends. In the absence of proper experience, you can draw a line at too sharp an angle and lose the invested funds.
Another important point in analyzing this kind of chart is that you should be careful about breakouts. 
It is not always easy to determine from the first time which chart indicators can be considered a breakout and which not, by how many points the price should rise in order to be regarded as a breakout.
The trading process is developing very dynamically. Indicators quickly lose their significance and become obsolete.
It is important to determine in time the moment when the trend becomes obsolete and it is time to build a new line.
This binary options trending strategy requires the acquisition of some practical experience. It is impossible to use a few theoretical rules to achieve regular positive results.
What is theoretically expressed in clear, simple terms, often does not work in practice..
It is for this reason that line indicators have not yet been created, even if they exist, in practice they give out erroneous constructions too often.
The strategy is designed for the skill and skill of the trader.
Filigree mastery of this method implies its use in a wide variety of situations. It is not necessary to use this method all the time, it often shows the greatest effectiveness as an aid.
Indicators for trading
If you are interested in trading options with a trend, Russia offers a market teeming with various brokerage firms, whose arsenal contains all the necessary tools.
Successfully making a profit using these tools implies that the trader must use all existing resources and opportunities. In particular, to acquire the skills of technical analysis.
Technical analysis methods are accessible to the beginner and allow access to very accurate forecasts. With this accurate information, you can make great strides in generating income.
Among the technical analysis tools, those based on the use of indicators are widely used.
Indicators are especially popular because of the same properties as technical analysis: easy to understand, easy to adapt to practical activities.
At the same time, they allow you to achieve increased efficiency of actions, allow you to take steps without additional, in-depth study, experience.
They are available for use immediately after the start of trading activities, are offered in large quantities, and are used as high-quality tools for implementing a wide variety of strategies.
Trend indicators are used to calculate the direction of trends.
Trading with the trend in binary options, the strategy of which involves monitoring price movements, allows for trend analysis using a number of indicators.
All of them are considered rather inert and give out information with a slight delay. Focusing on them, they track the state of price movement trends, which was in the past or is present. Despite this, such indicators make it possible to avoid a large number false signals and predict the course of market development.
Bollinger indicator
It is checked up by time, differs in excellent indicators in the environment of the modern market.
Lined up directly on the price chart and has view of three wavy lines.
When watching it, you should pay attention to the price chart, if it rises above the upper wave - this is an indicator of the beginning of an uptrend growth. When moving beyond the bottom, a downward movement is observed.
When it is located in the middle area, the market is called flat. Some traders focus on trading specifically with this type of market, while all the rest are in the waiting mode.
I did analytics on Bollinger here - - OH, AND IT WAS DIFFICULT FOR ME! But like wrote available.
MACD
It is represented by two variations: MACD, MACD histogram.
The usual version is almost no different from Bollinger in its graphical appearance, in its location. The histogram is made as an independent graph, where the trend is expressed in the form of vertical lines of various lengths. The length is proportional to the strength of the trend.
Arrangement of dashes above and below horizontal line indicates, respectively, the type of trend.
If you want to optimize activity using MACD, then keep in mind that it performs best on large time intervals, and on short and five-minute breaks.
Ichimoku indicator
Photo — lovedengi.ru At the beginning of use, it often seems difficult, but particularly attractive due to precision. It consists of five lines that form a variety of signals due to the forms of intersection. If the indicator is built on the chart, then the intersections with the chart line are also tips.
A large number of lines allows us to call this indicator self-checking.
Only if all received signals confirm each other, it makes sense to buy an option.
It is most often used for large scales, since its main task is to determine the trend.
With a large trend, this task is easier to implement.
Oscillators
These are indicators of a separate category.
If in Forex it is necessary to take into account the number of points passed by the price, then for options this indicator is not important.
Enough information about the change 2-3 points to make a decision that will bring profit.
This is exactly what oscillators do very well.
Stochastic
For many years it was in demand, as it was imprisoned for activities in the “channel” type market.
Itself is a channel limited by the upper, lower rulers.
If the chart goes beyond the top, it is an overbought indicator.
A move below shows that the market has been oversold, prices are more likely to go up.
This approach is relevant only when the trend is not expressed.
In the process of using indicators, trend strategies, it is important to clearly understand the principle of their operation. Only then can you count on success. In general, with a competent, thoughtful organization, these tools are a sure help in trading activities.
We finish for today. Crazy, right? I understand you perfectly. When I first encountered indicators, I almost went crazy. Time passed - it began to reach. Well, we will “finish” together, gradually. As soon as you deal with this material, immediately. It is available via the link. Bye everyone!
Hi all! Andrey is with you, and today we will talk about how trend trading works. After studying the proposed material, you will know how to determine the direction of the trend using various tools and methods of technical analysis. Since the article will a lot of practical material, I recommend that you do the following:
- bookmark the page;
- write down all the suggested tips that you can use in practice;
- necessarily watch the video tutorials and do all tasks that are in each block of the article.
In this short post, I have tried to collect maximum of simple and useful recommendations which can be immediately applied in real market conditions.
Test drive your knowledge
Below are four security questions that deal with how to draw a trend line and use it to determine the direction of the market. Please read them carefully and try to give maximum amount exact answers. The correct options are published at the end of the article.
1. Why do you need a trend line?
Write down your answer on a piece of paper.
2. Imagine that you have two trend lines in front of you: the first connects five lows, and the second two. Which one is more important?
BUT. First
B. Second
3. Determine in which of the listed cases the forex market has settled flat
BUT. Calm movement with reduced volatility of the selected asset
B. New price extremes do not form on the chart for a long period of time
FROM. The price stopped between two moving averages with periods of 10 and 50
4. What is the name of the market situation when several successive highs are formed on the chart in succession?
BUT. Uptrend
B. Compression ( flat)
FROM. Market reversal
If you have any difficulties with at least one question, then I recommend that you temporarily suspend trading on a real account and study the theory for a couple of months. Perhaps this is the main reason that you do not know how to determine the trend and earn from your knowledge.
What is a trend and how does it happen?
Let's start with the basics. Below you can see three market situations that are present at all time intervals of any financial asset.
About 70% of the time the price is in a sideways state. At this moment, a balance of supply and demand is formed between all market participants. Conduct transactions at such moments unsafe, since no one knows in which direction the next price jump will occur.
Watch the following two videos, which detail the types of trend that are present. on all stock exchanges of the world.
Lesson #1
Lesson #2
Exercise
Open a chart of any trading asset and learn visualize uptrend, downtrend and sideways trend.
Why it is important to track the trend and trade in time with the market
In technical analysis, there are three main rules that are introduced to all beginners in any exchange school.
Pay attention to the second postulate. Two additional regularities follow from it, which should take into account each trader:
- The price is more likely to continue moving than to change the chosen direction;
- The development of the trend will not stop exactly until the moment when the chart shows reversal signs.
If to speak in simple terms then big money can be earned only during a period of directional trend movement. It is also possible to make a profit on trend reversals and during the side market, however, this requires experience and sound strategy. Unfortunately, for beginners, such schemes are almost impossible to implement.
This video shows how you can use different types stock market strategies.
Exercise
Choose a concept for your future trading strategy. Think about how you will trade: with the trend, during the flat period or against the main trend.
What timeframe to work on
See the direction of the market on the time interval on which your trading strategy is being implemented.
For a more detailed explanation of this circuit, see the video.
Exercise
Determine the time interval on which you will track the trend.
Best Ways to Identify the Current Trend
There are over a hundred techniques to understand the direction of a market trend. Below we list only the five simplest and most effective. Whichever option you choose, always remember the main rule of diagnostics: if you do not understand in which direction the market is moving, then it is in a flat state.
Building trend lines
upward movement:
- increase;
- Connect the desired areas with the tool " trend line».
Downward movement:
- Find two adjacent points that are consecutive decrease;
- Connect the desired areas with the tool "trend line».
Alternatively, download trendline indicators and just wait for them to do the marking for you.
In this video you will learn how to add a trend line to a price chart and use it to get necessary market information.
Using technical indicators
- Open Metatrader 4 or another terminal you will work with;
- Go to the section " Indicators» - tab « trending»;
- From the available list, select any instrument that will send you signals about the current market situation.
In this video, you will learn how to determine the trend using popular technical indicators.
Support and resistance levels
Upward movement:
- resistance levels;
- If the price consistently overcomes level after level, then the market is in a stable trend.
Downward movement:
- Locate the next few on the chart support levels;
- If the price consistently overcomes level after level, then the market is in a stable trend.
When there is a trend in the market, the price movement resembles jumping up stairs:
Definition of four control points
- highs.
- See the direction of the last two lows.
Growing market:
- up;
- Each subsequent extreme above the previous one.
Falling market:
- Highs and lows directed way down;
- Each subsequent extreme below the previous one.
Flat:
There is no clear direction in the market or all control points are in the same level range.
More detailed description this method, see the following video.
Viewing a higher timeframe
- Go to the time interval that 3-6 times your working timeframe;
- If the trend ascendingups and downs;
- If the trend descending, then a smooth step-by-step lowering the bottoms and tops.
For more information about this method, see the following video.
Exercise
Choose any one method by which you will determine the trend.
How to determine the strength of a trend?
With this indicator, a trader can understand how long the current market environment will continue. The weaker the trend, the more likely it is to reverse soon (and vice versa).
Let's look at a simple way to effortlessly determine the strength of the trend.
- Open the trading terminal;
- Go to the section " Indicators»;
- Add ADX.
Watch the following video, which goes into detail on how to determine the strength of a trend in forex.
Exercise
Find in trading terminal ADX indicator and learn how to use it to determine market power.
How to use the trend?
Earlier we mentioned that there are three basic approaches that allow you to use the current trend. Review them again, and based on one of the methods listed, make sketch of your trading system.
Pullback trading | Finding Pivot Points | Opening deals in a narrow price range |
|---|---|---|
| You determine the direction in which the market moves | You set the trend | You are watching the trend |
| Wait for the moment when the price enters the correction phase | Waiting for signals indicating a market reversal | Waiting for the price to move into the consolidation phase |
| When movement in the direction of the main trend resumes, you enter the trade | Enter a trade against an established trend | Proceed to opening trades within the trading channel |
How to trade market pullbacks
How to spot a trend reversal
How to trade during a sideways market
Exercise
Make a rough sketch of your future trading strategy.
What should a newbie do?
Start trading market pullbacks and follow the trend. Once you learn how to make money this way, you can expand and apply more complex algorithms. Until then, forget about the exotic and all adventurous experiments..
Preparatory part
- Choose any asset you like;
- Set a four-hour timeframe;
- Add two indicators to the chart: Bollinger bands and ADX.
Schedule after completing all the preparatory steps:
Purchase
- The price is located in the interval between the upper and middle Bollinger band bands;
- The main ADX line is growing;
- Bullish engulfing»;
- One position do not invest more than 3% of the account.
Here is a four-hour timeframe for the GBP/USD pair. After entering the trade, we put stop loss at the level 90 points, a take profit made up 270 points
Sale
- The price is located in the gap between the lower and middle bands of the Bollinger bands;
- The main ADX line is growing;
- The price made a correction to the middle Bollinger band and formed candlestick pattern « Bearish engulfing»;
- We buy on a new four-hour candle;
- Stop Loss is set in the range of 60-100 points, Take Profit is 3-5 times more than Stop Loss;
- We do not invest more than 3% of the account in one position.
Here is a four-hour timeframe of the pair GBP/USD. After entering the trade, we put stop loss at the level 80 points, a take profit made up 240 points identify weaknesses and get rid of them.
Personal Observations
When you trade for a long time, you begin to understand why the majority of traders lose money. Below you can see the main patterns that many users simply do not want to notice.
- The market doesn't really care how you plot the trendline;
- No matter how strong the trend is, nothing prevents it from turning around and starting to move in the opposite direction, and then return to the starting point in a few seconds;
- Any prediction made is just assumption, which has no implementation guarantees;
- The market is constantly looking for money, so the movement is always directed against the majority;
- If your Take Profit is several times greater than Stop Loss, then even with a low percentage of profitable trades, you will be able to receive a stable income; ;
;
.Checklist
Below is a complete list of tasks that you would like to complete. for a complete mastery of the topic.
- Open a chart of any trading asset and learn to visually identify an uptrend, downtrend and sideways trend;
- Choose the concept of your future trading strategy. Consider how you will trade: trend, during a flat period or against the main trend;
- Determine time interval, on which you will track the trend;
- Select one the way in which you will determine the trend;
- Find the indicator in the trading terminal ADX and learn how to use it to determine market power;
- Make a rough sketch of your future trading strategy;
- Test your trading methodology on 40-70 trades, identify weaknesses and get rid of them;
- Check your strategy again and get ready to work with a real deposit.
P.S. Test Answers
- With the help of a trendline, a trader can project the trajectory along which the price will move in the future. Additionally, it acts as a reference level, which is equated to support/resistance.
- BUT. The line connecting the five lows much stronger than the one that survived only two contact with the price. The more touches, the higher the value of the level involved.
- B. If no price highs or lows are formed over a long period, this means that the chart is enclosed in a fixed price range with extreme upper and lower points. This consolidation is called flat and indicates a balance between market sellers and buyers.
- BUT. Two successive highs is a classic definition that is characteristic of ascending trend movement.
If you find a mistake in the text, please highlight a piece of text and click Ctrl+Enter. Thanks for helping my blog get better!
