Saturday, June 14, 2008

Define trend - revisit

Terdapat banyak cara untuk determine trends... Ada orang guna MACD, ada orang guna SMA slope, ada guna MA cross etc.. Pilihan ditangan anda... Apapun salah satu cara aku ialah dengan melihat wave swing point & swing low...

The rules were:
  1. As long as i see the most recent swing point low is higher than previous swing point low @ my right side of chart - Trend is up on that timeframes.
  2. As long as i see the most recent swing point high is lower than previous swing point high @ my right side of chart - Trend is down on that timeframes.
  3. If i see the most recent swing point low is higher than previous swing point low @ my right side of chart & at the same time i see the most recent swing high is lower than previous swing high point - This is symmetrical triangle chart patterns and price may continue in direction of trendline breakout.
  4. If i see the most recent swing point low is higher than previous swing point low @ my right side of chart & at the same time i see the most recent swing high point level is almost same as the previous swing high point - This is ascending triangle chart patterns and price may continue in direction of trendline breakout.
  5. If i see the most recent swing high point is lower than previous swing high point @ my right side of chart and at the same time i see the most recent swing point low is almost same as previous swing point low - This is descending triangles and price may continue in direction of trendline breakout.
  6. If i see the most recent swing low point is higher than the previous swing low point @ my right side of chart and at the same time i see the two recent swing high point level is almost same level - this is double top and confirmation of breakout if price berjaya break the most recent swing point low.
  7. If i see the most recent swing high point is lower than the previous swing high point @ my right side of chart and at the same time i see the two recent swing low point level is almost same level - this is double bottom and confirmation of breakout if price berjaya break the most recent swing point.
Note: As long as low getting higher - i assume trend is up. And as long as the high is getting lower - trend is down i assume trend is down.

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