Trend is your friend
Dear forum users!
This topic is open at the request of Mr. Nowi to discuss the meaning of "Trend is your friend" on examples using mt4 and mt5 charts.
In order to avoid the opinions that all the charts have been specially selected and fittedtoshow the apparent truth, I ask forum participants to attach the chart of the currency pair for discussion. In turn, you and I will try to understand the meaning of the so called "Trend is your friend" proverb in its usefulness or uselessness.
Regards,
I, for my part, can make a case for why I think the proverb is useless, but first I would like to hear your opinion.
And if you don't mind, I'd like to ask the moderators to move it to the general discussion section so it's more readable...
We know that a friend will not wish us ill (of course if it is a good friend - in this context by 'friend' we will mean a true good friend). Meaning what a friend should do.
a. Support us on the condition that we are not against him.
b. Give hints of his upcoming intentions so that we can be on the same page with him.
c. He is free if there are no complaints if he is not where we are.
If you agree with the above, if you have no additions/comments then let's move on.
The following should be done:
1. On the chart, look for a Trend.
2. Determine its direction and put points arbitrarily, assuming that we have joined it.
3. Consider what he was doing and whether his actions contradicted our interests.
We know that a friend will not wish us ill (of course if it is a good friend - in this context by 'friend' we will mean a true good friend). Meaning what a friend should do.
a. Support us on the condition that we are not against him.
b. Give hints of his upcoming intentions so that we can be on the same page with him.
c. He is free if there are no complaints if he is not where we are.
If you agree with the above, if you have no additions/comments then let's move on.
The following should be done:
1. On the chart, look for a Trend.
2. Determine its direction and put points arbitrarily, assuming that we have joined it.
3. Consider what he was doing and whether his actions contradicted our interests.
a friend doesn't have to ask for anything
♪ it's no use anyway ♪
a friend as my third shoulder will never be with me
♪ but what if I'm in love and he's in my way ♪
I'll kill the motherfucker That's the law
the third one must go
Briefly about the conditions for trend formation (this is my personal opinion - others may have their own thoughts, and forgive me if I write with all the details).
A downtrend (both of the following conditions should be met)
a) The price of the previous high has to be higher than the next high.
b) The price of the previous low must be higher than the next high.
Anuptrend(both of the following conditions must hold)
a) The price ofthe previous high must be lower than the next high.
b) The price of the previous low must be lower than the next low.
A trend reversal (change in direction of our potential friend), this condition is suitable for point b. of the previous post
The price of the previous maximum/minimum is not highly updated according to the conditions of an uptrend or downtrend.
I suppose we can now move on to the chart.
should be added to the annals of the forum...
I suppose we can now move on to the chart.
The farther I go, the more I am convinced of the truth of the saying that "There is a trend only in history". Such a good one, in which it would be worth standing, not to panic and make a profit, larger than when closing trades in it and opening alternative ones. Generally speaking, in my opinion, the trend will be characterized by the fact that the price will be steadily higher than the moving average. In my case it is EMA 20. That is, the price rises, then rolls back to the average, perhaps not for long and crosses it a little, and then from the average again moves away in the direction of the trend. In the picture we can see 2 trends: ascending and descending. I marked the downtrend a bit later, before the downward movement itself started. Namely, after some upward correction, which never reached the mentioned moving average.
I suppose so, yes, we can.
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Dear forum users!
This topic is open at the request of Mr. Nowi to discuss the meaning of "Trend is your friend" using examples of mt4 and mt5 charts.
In order to avoid the opinions that all the charts have been specially selected and fittedtorepresent the apparent truth, I ask forum participants to attach the chart of the currency pair for discussion. In turn, you and I will try to understand the meaning of the so called "Trend is your friend" proverb in its usefulness or uselessness.
Regards,