Why is the trend our friend? - page 5
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UsdZar, another “trend is your friend” case.
Trend is our friend because if we trade in line with the longer term trend then we can face small draw downs and can get higher return while trading.
The Australian central bank has confirmed that it will reduce rates again to support the growth (and weaken the currency) ... follow the trend.
And the short Jpy is a classic example of how corrections are useful to reinforce positions within a well-defined trend.
UsdZar, another “trend is your friend” case.
Nice example
Nice example
Crystal Clear Chart
For a long time I traded the 15m, 30min, and 1hr TFs and I didn't believe the trend was my friend. Then one day as I was studying 4hr and Daily charts I decided the trend really is my friend. Trends develop on larger time frames. Trading short time frames is just trading noise and news. But swing and positions trades on the larger time frames can be very profitable when following the trend. I now trade 4hr with a mtf stochastic indicator showing the daily momentum. On my daily chart I use the mtf stochastic set to show weekly momentum. I only go back to shorter time frames when I want to scalp the news or opening of a session (and then I check the 4hr momentum).
I have attached a couple of charts of the EurUsd (not my favorite) showing daily and 4 hr charts. You will notice the trends are much longer and more frequent than trading short time frames.
Another cross on which we can say that "the trend is your friend": EurAud. Each correction is useful to enter long.
Another cross on which we can say that "the trend is your friend": EurAud. Each correction is useful to enter long.
Exactly. Every time there is a retracement/correction that loses momentum and starts to return toward the direction of the trend (I like price action/candlestick patterns) it is a good time to place a trade in the direction of the trend. More times than not the retracement is just a mild correction and not a reversal in the direction of trend.
Exactly. Every time there is a retracement/correction that loses momentum and starts to return toward the direction of the trend (I like price action/candlestick patterns) it is a good time to place a trade in the direction of the trend. More times than not the retracement is just a mild correction and not a reversal in the direction of trend.
In this case, using oscillators as the stochastic and Adx is quite useful.