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  1. #1
    Rookie Member

    Very new need to know how to find trends !!!

    Any one out there know how to spot a trend ?

  2. #2
    Legendry Member Okane's Avatar
    Hi there, welcome to CommuniTraders.
    Unfortunately this is not the right room for discussing
    strategies and analysis. You can introduce yourself in this room!

    I will still write my answer here since you already created a thread and a moderator will move it to the
    correct room when they are available.

    There are big trends and small trends, depending on which time frame you are
    viewing. I recommend checking all time frames to get the big picture.

    There are at least 3 methods you should use:
    1. Use Moving Averages, my personal favorites are EMA 200 and SMA 50.
    Candles below them means downtrend. Above those lines equals an uptrend.

    2. Look for lower highs or higher lows for entries. Price often moves in
    "smaller" steps, you want to enter at the beginning of an step. See picture below!

    3. Use support/resistance lines, see picture below!

    Here you can see two moving averages, blue line EMA 200 and yellow line SMA 50.
    This is the M5 time frame and as you might already know this pair, EUR/USD has
    been and still is in a major down trend. These are the "steps" I was talking about earlier, see
    how candles create a small top lower than the previous top? This is called a lower high where you
    want to enter! Confirm with Stochastic Oscillator to see if that point is overbought/oversold.
    Support and resistance lines: Yellow line was my resistance line, drawn after analyzing as many time frames as possible.
    You can see in the picture a bearish (red) candle approximately 18 candles before my Arrow fell, breaking support.
    Click image for larger version. 

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  3. #3
    Legendry Member Okane's Avatar
    By the way, you definitely need to go through
    our school to learn more:
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  4. #4
    Master Member Bogdan G's Avatar
    Quote Originally Posted by browndog2004 View Post
    Any one out there know how to spot a trend ?
    Yes, I do:

    Higher Highs and Higher Lows = Uptrend
    Lower Lows and Lower Highs = Downtrend
    Insanity: doing the same thing over and over again and expecting different results. Albert Einstein (attributed)

  5. #5
    Specialist Member runneroption's Avatar
    Quote Originally Posted by Bogdan G View Post
    Yes, I do:

    Higher Highs and Higher Lows = Uptrend
    Lower Lows and Lower Highs = Downtrend
    This is the most accurate definition of a trend, but this is not something that can be seen as a way to profit from it. Better way to define a trend can be by using a moving average fan. If the price is above it is uptrend, if it is below it is downtrend.

  6. #6
    Active Member Ronye's Avatar
    I'm using MA to spot trend too. After that i draw some S/R lines and check multiple time frames. This is my strategy for the moment. In the future i want to test with some other pair of indicators to see the results. Anyway i think are more ways to find a trend, it depends how much do you know about indicators and what do you like and dislike.

  7. #7
    Rookie Member
    Yep I am doing that As I type. Thanks for the help. Looks like there was a good upward tread on that graph you sent me. I think

  8. #8
    Moderator Kolyo's Avatar
    Defining a trend is really a tough question. It depends mainly on the strategy you are using and the indicator sets. It doesn’t matter exactly how you define a trend in general but how it is defined inside your set of rules and your strategy. This is the most important thing.
    "The goal of a successful trader is to make the best trades. Money is secondary." - Alexander Elder

  9. #9
    Legendry Member willyw's Avatar
    Follow Okane's advise

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