Thread: 1) Do you have a question on Identifying the Trend?

Should you have a question about Identifying the Trend, here is the place where you can ask an instructor. The instructors are available 24 hours per day during worldwide business hours (Sunday afternoon thru Friday afternoon New York time). You will see the instructor's response posted after your question. (If you need help posting a chart, watch this short VIDEO.)

The presentations are very good but the "Instructor Takes" come across as very jerky, not clear enough or loud enough. Is there anything that you can do to rectify the situation?
Thanks.

The presentations are very good but the "Instructor Takes" come across as very jerky, not clear enough or loud enough. Is there anything that you can do to rectify the situation?
Thanks.

Originally Posted by lloydie3

The presentations are very good but the "Instructor Takes" come across as very jerky, not clear enough or loud enough. Is there anything that you can do to rectify the situation?
Thanks.

This is generally an internet connectivity issue.

The easiest thing to do is to let the video fully load before attempting to play it.

Open the video and click Pause. Let the video fully load and then press the play button and the "jerkyness" will not be a factor.

Originally Posted by lloydie3

The presentations are very good but the "Instructor Takes" come across as very jerky, not clear enough or loud enough. Is there anything that you can do to rectify the situation?
Thanks.

This is generally an internet connectivity issue.

The easiest thing to do is to let the video fully load before attempting to play it.

Open the video and click Pause. Let the video fully load and then press the play button and the "jerkyness" will not be a factor.

I trade only intraday, use a 5 min. chart and my objective in a trade is only 30 PIPs.

After the video I found out that we have to use another chart in another time frame to identify the trend.
The video tells that a daily chart is the best to see if we have a up or down trend.
But don´t you think that a daily chart is too much when I trade only in a 5 min. chart? Many times is the trend in the daily chart UP, but during that especific day in the 5 min DOWN.

My question would be what is the best chart to identify the trend when I use a 5 min. chart? To me 30 min. and 60 min. work good and identify fine the trend for the intraday trades in a 5 min. chart.

Is that correct or you would suggest something else?

By the way the videos are great! Thanks!

Originally Posted by Bahiense

I trade only intraday, use a 5 min. chart and my objective in a trade is only 30 PIPs.

After the video I found out that we have to use another chart in another time frame to identify the trend.
The video tells that a daily chart is the best to see if we have a up or down trend.
But don´t you think that a daily chart is too much when I trade only in a 5 min. chart? Many times is the trend in the daily chart UP and DOWN all day long DOWN in the 5 min.

My question would be what is the best chart to identify the trend when I use a 5 min. chart? To me 30 min. and 60 min. work good and identify fine the trend for the intraday trades in a 5 min. chart.

Is that correct or you would something else suggest?

By the way the videos are great! Thanks!

Thats a very good question Bahiense. In the Course, we suggest using a ratio of 1:4 - 1:6 when employing Multi-Time-Frame Analysis.

If trading off the 5m chart, the 30m could potentially be used as trend (5 X 6 = 30).

Although, the 5m chart can be privy to noise as it is such a short time-frame. So please do keep that in mind if trading with that setup.

Originally Posted by Jeremy Wagner

Should you have a question about Identifying the Trend, here is the place where you can ask an instructor. The instructors are available 24 hours per day during worldwide business hours (Sunday afternoon thru Friday afternoon New York time). You will see the instructor's response posted after your question. (If you need help posting a chart, watch this short VIDEO.)

Should the Swing Trader or Day Trader follow the trend on the Daily time frame when entering a trade? Or he should follow the trend on a shorter time frame, such as the 4hr or 1hr?. The market has reversed on me on my last trades. Thanks.

Originally Posted by Farch13

Should the Swing Trader or Day Trader follow the trend on the Daily time frame when entering a trade? Or he should follow the trend on a shorter time frame, such as the 4hr or 1hr?. The market has reversed on me on my last trades. Thanks.

The Swing Trader, one who will be in a trade for several days to perhaps a week or more would do best to follow the trend on the Daily chart or perhaps a 4 hour.

For the Day Trader using the 4 hour for trend and the 1 hour for entry would suffice. For even shorter term trading the 1 hour could be used for trend and a 15 minute chart for entry could be utilized.

I typically trades in direction of trend once pull back is over on 15 minute chart. I uses stochastic indicator to time the entry. for buying I use over sold & vice versa. To identify the trend on 15 minute chart I compares the swing high & low.

1) Now if I want to trade in direction of 60 minute chart which is in up trend, but now it is in corrective down trend, the 15 minute chart will show lower swing high & lower swing low during that correction of 60 minute chart.
Should I avoide those short sell trade on 15 minute chart & wait for higher swing top & higher swing bottom on 15 minute chart to go long which will be in direction of 60 minute char?

2) During swing formation there are plenty of intermediate swings, so to identify the trend should I compare the swings only at over bought & over sold area of stochasic indicator?

Originally Posted by 1601053957

I typically trades in direction of trend once pull back is over on 15 minute chart. I uses stochastic indicator to time the entry. for buying I use over sold & vice versa. To identify the trend on 15 minute chart I compares the swing high & low.

1) Now if I want to trade in direction of 60 minute chart which is in up trend, but now it is in corrective down trend, the 15 minute chart will show lower swing high & lower swing low during that correction of 60 minute chart.
Should I avoide those short sell trade on 15 minute chart & wait for higher swing top & higher swing bottom on 15 minute chart to go long which will be in direction of 60 minute char?

2) During swing formation there are plenty of intermediate swings, so to identify the trend should I compare the swings only at over bought & over sold area of stochasic indicator?

You have some very good questions. Here are a couple of general concepts to keep in mind. Think of 'trend' as existing in 3 categories...a) strong uptrend, b) strong downtrend, c) a weak or non-existent trend

The higher probability trades are going to appear with a) & b). So first, find the strongest trends in the market. Then, scale down to a smaller time frame chart and look for a timed entry in the direction of the trend.

Ideally, you would like to see the 15 min and 60 min trends line up in the same direction. However, since you are using the 60 min chart as your trend indicator, its trend will tell you what direction to trade...this works well when you have either a strong uptrend or a strong downtrend.

For trend determination, look at the swing highs and swing lows. If you see a series of lower highs and lower lows, that is a downtrend. If you see a series of higher highs and higher lows, that is an uptrend.

When you see a series of lower highs, then look for overbought levels to initiate a short sell position.

Well done on using a 1 to 4 ratio between the 15 min and 60 min trend charts.

Here is my 15minute AUSUSD chart ,
The 60 minute trend is down & price have broken 15minute consolidation range below 0.9900

The price pull back up to 0.9927 ( A region marked) & I had a stoch sell trade at 0.9899 which stopped out with 28 pip loss

Now the price have been reached at 0.9950 ( The B region marked) but there is no divergence on stochastic indicator it is inched up than wahtwas at A region.

But since the price retracement is within the swing SW1 to SW2& % retracement is up to 70% of SW1-SW2 can I go short if there is sell signal on stochastic without divergence?

Can I have a bearish bias till price crosses swing SW1 & attempt stoch. sell signal??

Originally Posted by 1601053957

Here is my 15minute AUSUSD chart ,
The 60 minute trend is down & price have broken 15minute consolidation range below 0.9900

The price pull back up to 0.9927 ( A region marked) & I had a stoch sell trade at 0.9899 which stopped out with 28 pip loss

Now the price have been reached at 0.9950 ( The B region marked) but there is no divergence on stochastic indicator it is inched up than wahtwas at A region.

But since the price retracement is within the swing SW1 to SW2& % retracement is up to 70% of SW1-SW2 can I go short if there is sell signal on stochastic without divergence?

Can I have a bearish bias till price crosses swing SW1 & attempt stoch. sell signal??

You have the right idea on this...well done.

Yes...based on the 1 hour chart, the bearish bias would be in force as long as the next high (SW1) is not taken out and the pair begins to build higher highs and higher lows on the 1 hour.

It is nice to have divergence present but it is not mandatory for using stochastics.

Thanks Mr. Richard for the reply
The second stochastic sell attempt @0.9950 with stop 0.9975 made me too rich by achiveing risk reward ratio morethan 4.
Thanks

Originally Posted by 1601053957

Thanks Mr. Richard for the reply
The second stochastic sell attempt @0.9950 with stop 0.9975 made me too rich by achiveing risk reward ratio morethan 4.
Thanks

It is our pleasure.