how to identify trend - page 2
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You dont need indicators to know the trend. However, in my opinion a few moving averages can help you see when a trend will reverse and they can give you a good entry point. For example, if you have a 20, 40, and a 80 moving averages and the 20 crosses below the other two and the 40 crosses below the 80 then you will want to start selling because the market should continue downwards for a while. You could then set a stop loss somewhere above the previous top. The exact opposite is true if the moving averages cross upwards.
Not forgetting the Time Frame.
Lower time frame would give you more entry and exits than the higher time frame. So with the trend, Lower time frame will have more trends (noise) than the higher time frame.
The trend is your friend, and trades in the direction of the prevailing trend always have a higher probabilities of success than those against the trend or in a sideways market. The idea of what a trend is, is simple: An uptrend is defined as a series of higher highs and higher lows. A downtrend is defined as a series of lower highs and lower lows.
There are many ways for trend identification. Technical traders see market movement to determine upwards or downwards trend or they notice MA for this purpose.Fundamental depend on market updates and news . What type of trader you are do much work on that strategy before enter in market so that you can find good trend.
Finding trend is not sufficient for trading. You should also find accurate entry and exits. The most dangerous is hidden trend . AID forex indicator is the only indicator which can show you the hidden trend.
Let me see if I can help out here a bit. I have heard say that Technical Indicators help judge a trend. One of the most widely used indicators, moving averages can help traders verify existing trends, identify emerging trends, and view overextended trends about to reverse. As the name suggests, these are lines overlaid on a chart that "average out" short-term price fluctuations, so you can see the long-term price trend. How to put a good stop loss still trying to figure that one out myself..
You are definitely right, that indicator has proved reliable ad helpful to many traders over the years. He can read online articles about it. There was this video I saw sometime ago on this indicator and believe it would be helpful.
Check it here: https://www.mql5.com/go?link=https://www.profiforex.com/education/indicators/34
In identifying trend the use is technical analysis is a good tool. Moving average an indicator help the trader to confirm trends once they have been established. There are so many indicators that will help you so learn how to use them.
I think the use of trend indicators is really encouraged, indicator is something you should really go for. You can scout for indicators online, to find the one that will suit you. I have also seen some videos of different indicators, their use and how to set them up.
Check videos here: https://www.mql5.com/go?link=https://www.profiforex.com/education/indicators/36
Have you heard of the Zonal Trading system? This system is the combination of two indicators by Bill Williams. You can find an entry point and decide your exit point. In order word, you can decide your stop loss if you know how to use this system. It is a free system that anyone can use. Here is how to use the the Zonal Trading system to make profit daily: Zonal Trading strategy
Let me see if I can help out here a bit. I have heard say that Technical Indicators help judge a trend. One of the most widely used indicators, moving averages can help traders verify existing trends, identify emerging trends, and view overextended trends about to reverse. As the name suggests, these are lines overlaid on a chart that "average out" short-term price fluctuations, so you can see the long-term price trend. How to put a good stop loss still trying to figure that one out myself..
Yes indicators definitely is the answer.
For instance the Parabolic SAR
The indicator parabolic SAR – is unique. It does't give an accurate strategy of an input, however it can be perfectly used for an output from the transaction on the principle of the sliding stop.
When understood it's a good trend indicator.
A Forex market trend occurs when the price of a currency pair moves in an identifiable direction over a specific period. The price of a currency pair is quoted as an exchange rate, which is the value of one currency relative to another.