Why is the trend our friend? - page 7
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Part of the secret to trading with the trend is to make sure that you are in agreeance with the larger trend. To me the one of the best trend indicators is the MACD-OsMA. Not only does it tell the direction of the trend but, if you get a three or four color version it also tells you if the trend is accelerating or slowing down.
Now if you just go with the cross of the signal lines (or zero with the histogram) you will have several false signals. BUT if you also use a multi-time frame version with the larger time frame as a filter you will have a lot less false signals. I personally use a 3 color version. In the following 4hr screen shot you can see that it does not pay to go long when the Daily MACD-OsMA is red (going down) or to go short when the Daily is green (going up). When the osma is yellow that indicates a slowing of trend and a possible change of direction which is signaled by cross of the 4hr osma. BTW, notice the huge divergence between the macd line and the direction of prices just before the last signal.
Now there is one exception close to the the left side where it looks like there is a long signal in harmony with the daily osma that goes nowhere. I avoided that signal because it was a weekend signal. If on the close of the next bar the daily osma would have been green I would have made the trade but, because it immediately turned yellow that was a sign that the trend maybe changing.
Trade well,
gcg
Luck is another important things for this!! You know what today when I was going to closed my trade with a good profit, the right time my computer crashed and logged OFF!! Then I restart it and you know what happened!!
I just saw that what was my profit, I was seen then same amount in negative is my lose status there! SO how do you explain that? Something can't not be defined with any technical, scientific, algorithmic, or specific.
ThanksIt happens, best advice: you cannot control these things, have your stops in place......
So it’s time to sell Kiwi and Aussie, back on the key resistances.
Because trend is, probably the best way to find the entry point. When the market is passive, you never know what to expect. Trend will most likely keep moving whether the same direction or opposite. Both will give the opportunity to gain profit.
Adx above 30, it’s a good moment to take advantage of the strength of the Cable. The 20 days moving average is the best entry point.
Trend is a friend you have to be very careful with))) Like if you are a friend with alligator. It is good until it turns against you. When it happens, you better make sure that you have something that can protect you.
We have to folow trend or go with trend if we want to get profits. against the trend no one can be a profitable trader. It is not necessary to go with trend as higher or lower. I try to remain inmiddle and get some small profits. We can not rely on trend because it can change any time.
So is it "we have to follow the trend" or "we can not rely on trend"?
The trend is our friend not only because it gives you the idea of what direction the price will go, but it is also giving you the opportunities to gain profit. I like to use the trend pull-backs. If you look at the daily chart of USDCAD you can see the clear upward trend that has began in august 23. If you draw a trend line you might see that currently there is a pull back, so I've decided to go long from there. And will hope that the trend is my friend.
A popular trading term is “the trend is the friend. ” This particular expression possesses stood the actual test of energy because a lot of traders still find it as a critical building block of your trading plan.