How do you define a trend? And....

How do you define a trend and please feel to free to argue in a constructive healthy manner the point of view of the other posters.

When you have a friend, he's a trend, or something like that.

Mike Kshemaraja said:

How do you define a trend

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With experience.

BeginnerJoe said:

When you have a friend, he's a trend, or something like that.

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You mean the friend is your trend?

Shakone said:

With experience.

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Would you like to articulate?

Mike Kshemaraja said:

You mean the friend is your trend?

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Yes if he shows a statement of winning pips, he would be trending in the correct direction.

BeginnerJoe said:

Yes if he shows a statement of winning pips, he would be trending in the correct direction.

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LOL, here is the statement.

What I am sure, is that a trend is not always the usual Higher highs/higher lows or vice verse, as it is commonly said..... that definition can kill you fairly quickly if you are not aware of the traps market likes to set in those "trends"

Trends can be readily defined in a number of ways using channels, increasing / decreasing highs and lows, gradient lines etc., and any / all of these are fine as far as they go. The real problem is seeing, from what price has done recently, that the trend remains likely to continue.

My definition of trend goes by what I see on the daily chart since this usually translates into intra-day bias.

So right now we're seeing a reversal/pullback on Eur/Usd, and I've tended to go long more than short since that's the prevailing condition even though I'm a day trader.

I think intra-day is too short a time frame to define "trend" since those may or may not last longer than a couple hours whereas the daily stuff can go on for months.

Obvious trends below.

OK, but I think it will be nicer to have a more detailed explanation on how we define a trend.

A close above or below 10 EMA = a defined direction / trend / bias etc.
imo

I define the trend in the time frame I trade based on HL's and HH's (for an uptrend).

Trading the 30sec(ticks) TF I only go back no more than two hours on the same chart as an indication. (I do not use bigger TF to guide me)

A double or triple top will indicate me that the trend is slowing down, a successive lower high will confirm it further for a possible reversal.

I use the 20 ema for a possible bounce in the direction of the trend, specially if price have not been touching the 20 ema for a reasonable time (indicating strength).

I also take very much in consideration the nature of the trend from the time it breaks ( the length of the candle, the speed (tick charts) and so on, also consideration will be placed on his relative pullback (did price form a higher low or it is a diagonal one? and so on)

Also to keep my sanity at bay, LOL, I only will buy above the 50 ema and sell below it.

Hi,

The picture of the graph depicts a typical trend line pattern. Nothing fancy and very simple. To draw a line you only need two reference points. The first line was drawn at the second bottom thick black line, this was then copied and moved to the higher area where there are also two thick black lines both behind the bottom lines in time. This is also where the higher highs higher lows theory comes into play.

The specific market then continued within this trending range giving the opportunity to buy the lows and sell the highs, or simply stay on track for longs until the break at the end - depending on your specific trading style.

On the graph I have removed the market name, price and time period as this is not relevant to the discussion and don't wish to bring up various talk about specifics. Its only a simple trend line, take it as interpretation only as you will find that sometimes you draw a trend and it breaks immediately. Thats just the way it goes. This simple trend line will be as relevant to a smaller time frame as it is a large and will work on a variant of indices, stocks and forex. A useful tool to have but should not be used alone.

Please note: I have chosen this market at random and did not trade off this particular trend line using this graph. These lines have been produced this morning and therefore in hindsight.

Happy trading.

Lee Shepherd

hey all

this is a similar discussion now


http://www.trade2win.com/boards/for...cessful-technical-analysis-4.html#post1882278

NVP said:

hey all

this is a similar discussion now


http://www.trade2win.com/boards/for...cessful-technical-analysis-4.html#post1882278

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True, that's where I got the idea from. But that thread is about TA in general, I wanted to make it more specific about the perception of the trend only.

Mike Kshemaraja said:

True, that's where I got the idea from. But that thread is about TA in general, I wanted to make it more specific about the perception of a trend only.

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good idea..my link was simpler than dumping stuff here

Can anyone see a head and shoulders (which would be a trend start) on the 30M Euro/$?

NVP said:

good idea..my link was simpler than dumping stuff here

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Ok mate.