We always hear the cliche 'the trend is your friend'. The statement is true, however the method to identifying a trend can be deceptively tricky. Technical analyst come up with many ways to identify the trend. Some look at the slope of MA, some look at technical indicators such as MACD that have been specifically created to identify trend. However, you can actually look directly at price action to identify the trend.
You rarely seen your trading pairs move straight up or down. They normally move up and down in a stair-step fashion.
When a pairs moves up and start to retrace and move back down, it creates new high - peaks.
When a pairs moves down and start to turn around and move back up, it create a new low - valley.
So basically, by using our eyes then we can determine the trend by looking at highs (peaks) and Lows (Valley).
Identify the Up Trend - When the price making a series of Higher High and Higher Lows.
Identify the Down Trend - When the price making a series of Lower Highs and Lower Lows.
Identify the SideWays - When the price is making Neither a series of higher or lower highs nor the series of higher or lower lows.
You rarely seen your trading pairs move straight up or down. They normally move up and down in a stair-step fashion.
When a pairs moves up and start to retrace and move back down, it creates new high - peaks.
When a pairs moves down and start to turn around and move back up, it create a new low - valley.
So basically, by using our eyes then we can determine the trend by looking at highs (peaks) and Lows (Valley).
Identify the Up Trend - When the price making a series of Higher High and Higher Lows.
Identify the Down Trend - When the price making a series of Lower Highs and Lower Lows.
Identify the SideWays - When the price is making Neither a series of higher or lower highs nor the series of higher or lower lows.
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