you do not need brooks to say where this is going https://www.tradingview.com/x/lQns1foR/
this is one of the best posts i have seen in ET1) 1st identify if u are in a trend. If you are in a trend, trade with the trend.
2) 2nd, there is no way to tell before the fact that a trend will break. Obviously some people will try to pick tops, eventually they will be right but hopefully before they lose their entire account.
3) However, there are ways to tell when a trend has in fact broken and then trade with the new trend. If the trend was up, then seeing a LH after a LL. A full candle breaking below a support level. A triangle or trend line break.
4) Note you can have a false breakout if the trend is pretty new that for example will trap someone. It also depends on FA and if the news was really good that made an uptrend. For example, believe it or not Trump beating Biden will move stocks higher. A Biden victory will move stocks lower. This does not mean I support Trump since I just need to right on direction and I don't care if stocks go up or down as long as they do go somewhere that I can follow.
you do not need brooks to say where this is going https://www.tradingview.com/x/lQns1foR/
Many who have run the numbers (I am not one of those) say markets trend 30%, 35% of the time. Range the rest of the time.
So it is all well and good to say exit when current trend ends. Then jump on next trend. There is a lot of in between ... between trends.
That's redefining a very typical meaning of the word trend.Even in range markets there are trends. The prices trend from support to resistance and vice versa on a shorter timeframe.
That's redefining a very typical meaning of the word trend.
An uptrend being comprised of higher highs/lows and a downtrend of lower lows/highs but if currently there aren't any or very few consecutively how can either direction be considered a "trend"?
No IMO that is not a trend unless you want to go real granular stepping down from a daily to a 5 minute. Or a 5 minute down to a tick basis. Then you can always find a trend. Kinda like saying crack open a brewski when you get up in the morning because it is 5:00pm somewhere on the planet.
Thanks for the dissertation which has not much to do with my response to the previous post. Trend and range or non-trend PA.Yes, and also, it's a matter of calibrating the appropriate context for one's trading timeframe...
And Ranges 70%. Trends are Made Up of two components BO’s (which happens on about 10% of the bars.) And Channels. Once the first pb in BO hits then the market begins a channel (which is also Just a part of the BO trend)So......it behooves a trader to learn to trade ranges as most price action is sideways. And it behooves a trader to learn how to trade channels as they are the larger element of a trend. And it behooves a trader to learn to trade spikes or strong BO because they are often the first part of a trend and often offer quick big rewards on high probability.Many who have run the numbers (I am not one of those) say markets trend 30%, 35% of the time. Range the rest of the time.
So it is all well and good to say exit when current trend ends. Then jump on next trend. There is a lot of in between ... between trends.
Trend followers are your friends.