Trends are clearly important to trend followers, but anyone who trades in any style needs to know the trends in the markets in which they operate. General trends can affect your business style. If the trend is bullish, it may process the buy signal differently than selling the signal to the trend. If the trend is sideways, following the trend approach is frustrating and probably not a useful way. A downtrend in a particular market may have a different character than an uptrend. In many cases, it may be easier to trade the beginning of a trend than the end of the trend. Therefore, it is important to know what the trend is.
However, to complicate matters, many trends can occur in the same market, even on the same chart. There is a trend in the trend. Different periods of moving averages or metric inputs can show different, often confusing and contradictory tendencies. There may be a downward trend towards the 30-minute chart, but the daily chart shows a strong upward trend and the monthly chart shows a horizontal trend. It’s the most comfortable and reassuring time to trade when everyone is in line, but if you wait until everything is ready, you probably won’t trade very often and often don’t trade on time. And, in many cases, comfortable and easy transactions are commonplace and often inconvenient. It’s a good idea to keep it simple and change the time frame of the chart you want to analyze.
Most of us want indicators to guide us because indicators are quantifiable. We can rely on them more confidently. However, the purest and fastest way to determine a trend is to look at the price structure. The price will not be delayed. The price is not derived from anything. Is real. It can be frustrating, but it’s not a lie.
The easiest way to define a trend using a price structure is to look at the highs and lows. A pivot point, or pivot point, is a price bar with a peak surrounded by two or three low highs on either side, or a low price bar surrounded by two or three high lows on both sides. Visit:- https://www.internet-navigator.de/
No matter how you define a pivot point, the idea is to set a price range that excludes the previous pivot point in one direction. This is the same theory of the market that produces higher highs and lows, although not always correct. A break may be formed in the price structure, the price may temporarily reverse, and the market may reach a low, but the upward trend will not change unless the low is removed.
These fluctuations are important to the price structure as they indicate where prices have stopped and reversed for at least some time. The market can then retest these areas to see if the price returns or if the price could move further beyond the previous resistance point. The market is constantly testing whether a transaction accepts or rejects a price, and these pivot points are the basis for these tests.
We did not find a single indicator or trend-following approach that would be useful as a stand-alone system. However, I have found that trading against this trend is not beneficial. Therefore, I would like to know the most likely direction of current market trends and the length of time I am trading. Then you can introduce iteratives to the trend, but it’s always in the direction of the trend. I’ve had years of frustration in learning this lesson. Choosing the top or bottom of the market can be rewarding, but following the trends will increase your chances of success. Dive into a raging river and you can either ride the stream comfortably or swim crazy and swim upstream. Usually the best thing is to stay where you are. So know the trend and trade only in that direction.