Wednesday, July 31, 2024

how to know the trend?

well, you eyes tell you

still, if you want to check it with some method, here is the one i use

assume there are 4 chart timelines

1) 1 min chart= child

2) 5 min chart = father

3) 15 min chart = grandfather

4) 30 min chart = great grandfather

the trend of the more aged is the trend.

eg if 1 min child chart sma trend is up and 5 min father chart sma trend is down, it is most likely a down trend, a sell on rise trend, for short or immediate term, atleast

sma trend means = whether price is above or below sma, whether smaller sma is higher or lower than larger sma. eg. if 15 sma is below 50 sma, trend is down.

checking of the higher generation sma trend is a good way of checking the trend. 

take trade timed by smaller generation chart but in line with the trend of the higher generation sma

taking trade pro-trend is less risky than against trend.

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