What is the best way to know instantaneously if your Time Frame is in uptrend or downtrend?

New comment
 

Does anybody have the holy grail to know whether the market (in the considerd\ed Time Frame)

1- is in uptrend or downtrend?

2- wether the present long/short signal is a trend reversal

I am building an EA to swing trade in market direction only. My entry points are good but not always in phase with the overall market...

Thanks for suggestions

 

You will find libraries and the internet full of books on the subject.

I am sure that many here have several ideas, but each time we think we have it, the market decides not to play ball. The best we can hope to do is get it right more often than wrong (weighted by risk & reward). Should someone stumble on a reliable way of doing it, and start trading with it, then I can assure you that the market will, from that time on, change.

Some may disagree, but let me explain ...

Let's say I discover that EURUSD is *always* higher on Tuesdays at 11:41 than Wednesdays at 09:23 (Hey, I'm making this up so just bear with me for a moment). So I share this 'secret' and people start selling on Tuesdays at 11:41 and buying back on Wednesdays at 09:23. The act of people selling will drop the price, and the act of buying will raise the price. My discovery will be rendered useless. Indeed, it's possible that now my discovery will in fact be reversed! Someone now discovers that prices DROP from 11:40 to 11:41 on Tuesdays, and JUMP from 09:22 to 09:23 on Wednesdays, and starts trading that, which causes .... etc.

I realize that I've left myself open to counter claims, but hey, I'm happy to nail my colors to the mast, and should someone convince me otherwise, I am actually prepared to change my opinion.

"Changing your behavior in the light of new information is a sign of intelligence" - brewmanz

New comment