Trend Question (examples)

[iamnewuser911]

For example

https://www.tradingview.com/x/NWigWNhP/ < This is an uptrend.

https://www.tradingview.com/x/ZawQeW0e/ < However this is a downtrend on lower time frame. I can short since I trade on lower time frame like hourly, but where do I know when to stop shorting?

 

[fordewind]

when it stops goin short

 

[iamnewuser911]

when it stops goin short

What do you mean?

 

[Indoril]

What do you mean?

It all depends on how you define a trend.

 

[fordewind]

What do you mean?

You didn`t even post the right charts, with clear set up to question.Post again what you are trying to achieve and you`ll get the answer shortly.Lots of gurus(seriously) outthere...

 

[qxr1011]

For example

https://www.tradingview.com/x/NWigWNhP/ < This is an uptrend.

https://www.tradingview.com/x/ZawQeW0e/ < However this is a downtrend on lower time frame. I can short since I trade on lower time frame like hourly, but where do I know when to stop shorting?

Well what u discovered is that u need the definition of the trend which must include how to determine the time period in which the trend is occurring ( and therefore which to use), as well as the clear ruled that indicate where and when the trend starts and ends.

One should never open the chart and define the trend on it, one should define the trend and then find the chart with the period that most fits the definition. That's how u find different trends in different time periods.

 

[Xela]

this is a downtrend on lower time frame. I can short since I trade on lower time frame like hourly

With which trades do you think you'll do better, overall: entering short trades on your lower time-frame when (as in your example) there's an uptrend in the higher time-frame, or entering short trades on your lower time-frame when there's also a downtrend in the higher time-frame?

 

[MrScalper]

For example

https://www.tradingview.com/x/NWigWNhP/ < This is an uptrend.

https://www.tradingview.com/x/ZawQeW0e/ < However this is a downtrend on lower time frame. I can short since I trade on lower time frame like hourly, but where do I know when to stop shorting?

Are you sure you know where to do the first short..let alone adding to it!

You will find from your answers that very few actually know how to identify the best trend to follow..and even fewer know how to trade same!

Price can only move 3 ways..but depending on your desired objective..the 3 ways can overlap..the key is your "desired" objective!

 

[Traderjohnsblog]

Your odds of success are greatly enhanced by trading with the larger trend. Which, I am pretty sure is what Xela was saying. I agree.

Having said that here is my answer. Exit when on a lower time frame than entry time frame price begins to generate swing highs and swing lows that almost parallel with each other. This will indicate that price is forming a structual top or bottom.

So if you go short on an hourly, look at a 15 min chart for your exit. Nearly equal swing highs and swing lows on the 15 min chart indicate a change in structure and you should close or protect your short position.

 

[schweiz]

where do I know when to stop shorting?

1. watch the chart with prices and point out where you should have gone in and out in hindsight
2. start to build a system that get's in and out in such a way that you have optimal performance
3. keep in mind that higher timframes always have higher, or at least equal, potential profits then lower timeframes in the waves it makes. difference between high and low in each timeframe are bigger in higher timeframes so more room for profits as slippage and commission stay the same.