The trend should be able to determine without much effort. If you are surrounded by math textbooks, use some kind of ultraprecise calculations, fiddle with oscillators endlessly, then your affairs are bad. Trading should be simple and joyful. All the talk that speculation is hard work is a bluff, which is spread by professionals for beginners. Why do they do it? To demonstrate its worth. Right trading, like a good diet, is simple, but sticking to it is difficult.
Martingale and trend
Martingale fans are less likely to need a trend. At the slightest unidirectional movement, they enter the counter-move. And yet, fans of this odious trading method take into account the strength of the current.
The similarity of market trends
What is the trend like? It is compared to sports. For example, in boxing, wrestling, football, volleyball and not only the opponent can attack for a long time. It is important to be able to repel the attack and go on the counterattack. The trend, too, may not move according to your scenario, and you must be able to cope with it. The trend is compared with the fighting, which is also very similar to the truth. If not you, then you. The trend is very similar to the sea and the ocean, where there are calm, storms, tides.
When is a trend not a friend but an enemy?
Whatever the trend, no matter how correct your predictive power, the trend may be your enemy, contrary to the common saying, “the trend is your friend.” It will quickly turn into an enemy if you trade on the latter, and even worse – on borrowed funds. If you remember how many Chinese (and not only) were thrown out of the windows during the 2008 crisis, then this is good. In order not to follow their example, trade only with “unnecessary” funds.
Trend Identification Using Expert Advisor
Advisers do not know how to think, but they can give signals about a trend reversal, about an emerging new trend. And yet, you should not neglect advisers. Sometimes they quite accurately indicate the beginning of a new emerging trend, especially in the stock market.
MA, candlestick combinations and trend
Moving averages help you find the right entry point to the market. But they do not know what will happen in the next moment. The combination of Japanese candles is also very informative, and you need to be able to “read” them.
The success of any trade depends on a correctly defined trend. In order not to be mistaken in your choice, you must be able to use different methods of identifying it. You can find a trend using price highs and lows, TD lines (Thomas DeMark), internal trend lines and moving averages. The most effective recognized combination method of identification, which includes several types of “reading” the graph. It is also extremely important to find your own path to success and to finding your own ways to assess the trading situation.