Indentifying the trend depends on the analized timeframe,
for the D1 timeframe the 200 EMA can be used:
I mention the daily chart because it shows the important trend,
on lower timeframes you could take as a trend what is only a correction of the trend on the daily.
as the oldsaying goes, the trand is not your friend , it will be there untill it band , there is some trader will take the 2 trand the 3 trand just to make sure the wagoon is active trend .
if any body realy know where is the true trand is , IT will be the end of the market . well it can be track but batter be save and sorry , see the trand put 1k lots to it make some , but next time put 1k lots
wont work , so another important thing is MM too . let the market or the data move first , till can be identify what and how it will react to the trader around the world , and what your thinking .
then get apicture where the trend is going .
I like to use two moving averages. For me, the 120 simple moving average and 65 simple moving average do a great job. The 65 period moving average acts as a dynamic support and resistance while the 120 moving average is to identify overall trend. However, the 120 moving average would be very lagging and so I compensate for that by using the 65 period moving average. Looking for the cross over point and how price is placed along with each help.
There is no one right way. You can also do fractal counting, use other indicators, and so on. Just whatever works for you.
Hi guys, I just start a trading discussion about what the best method to identify trend. We know there are three type of trend:
1. Up Trend 2. Down Trend 3. Sideway.
How we identify Trend?
Thanks in Advanced.
Wrong question because the real answer is in your question. In order, the answer is: up, down, sideways... There are any number of ways to make an indicator for trending and they are all in MARKET... just filer the word trend and sort by FREE to get some basic ideas.
All the various ways to tell the trend have upsides and downsides depending on how they are actually traded such as with timeframe or using multiple timeframes with longer for direction and shorter for the actual trigger.
There are lots of articles to read but you can follow trader's pages here and see what works for you.
Absolutely take your time learning and use a DEMO account to test strategies.