There are infinite ways to define "the trend" not to mention where or when.
Sorry but simply saying to a newbie follow the trend wont get anyone very far.
What are the most important things for Technical Analysis?
- Thread starter iamnewuser911
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There are infinite ways to define "the trend" not to mention where or when.
Sorry but simply saying to a newbie follow the trend wont get anyone very far.
What do you suggest? Price RARELY trends nicely, for example Eurjpy right now
Stop asking and study price more deeply. Every successful trend trader has their own unique way of filtering out signals from noise, regardless of time frame. If you can't figure it out, find a mentor, or find a less expensive hobby
The first question is always whether you are in a trend or a trading range because the strategies are exactly the opposite. For example, if you have a bull trend bar and you believe it is in a trend, you would buy 1 tick above the high in anticipation of it going higher, but if you believe you are in a trading range you would short the high in anticipation of a reversal down.
If you want a real trend stop reading fast TFs and if you still find a range either trade it as such or change instruments if trading trends is your one trick pony.
I trade forex spot, so how do I see when a side is trapped? Or when people lose money?
The most important thing about TA is staying away from most of it. You decide from what.
You cannot see trapped traders beforehand only afterwards.
an example would be a break of an resistance level.traders believe that a resistance level has been broken and would enter for a breakout.but their is no follow through and the market heads lower back into the range or the opposite direction trapping traders who went long.