Is the trend really your friend ?

[stephane]

When talking about a trend, remember you are talking about a specific timeframe. A bearish trend on a weekly chart, when consolidating, if a bullish trend on the H4.

In order to know where a trend may end/start or even consolidate, you need to also have a look at higher Tfs. Spot places of support and resistance on those charts, this is where the trend may change on your trading chart. Exemple:
This is AJ daily. Clean bearish trend, clean bearish BO, and then a dragonfly doji out of nowhere.






Of nowhere? Not really. Take a look at the Weekly TF.





On the weekly it is rejecting the 200 SMA. And by the way it is rather an uptrend !


This is just an exemple how you may anticipate trend's turning points by using higher Tfs,

Trade safe !

 

[Pharaoh]

When the trend
hits an end
it no longer
is your friend

 

[NicholasM]

It depends on whether you are a momentum investor or a swing trader. In my opinion, momentum traders rely very much on trend. Therefore, indicators like MACDs and CCIs etc are crucial to their trade. As for Swing Traders, Fibonacci Retracements, MAs and Ichimoku Cloud come in handy. But they all test the relevance/reliability of a trend from different perspectives.

 

[iMusingKiMi]

Trend not my friend, retracement my best friend. Every trend have retracement, if you see a trend, put on it with no precise entry, that's call chasing, not your friend anymore and they will chop you out easily.

Hence, everybody thought trend is their friend. By the end, gotten chop out.

 

[dkami]

The trend is your friend and divergence never lie's

 

[EugeneCooper]

All Forex Gurus have their own visions on the definition of the trend. So trend is your friend, but what is trend for you might not looks as a trend for other traders.

 

[stephane]

The trend is your friend and divergence never lie's

Except from times to times !!!

 

[jkm]

How you handle the trend determines whether it is your friend or not.

 

[iMusingKiMi]

All Forex Gurus have their own visions on the definition of the trend. So trend is your friend, but what is trend for you might not looks as a trend for other traders.

Haha... I agree this one, nice... Some people say Elliot Waves works, but is it after event drawing or it really works always? To me, it is just some after event drawing. As I always said, you can easily find 10 reasons if the trade works after event, in other hand, you can also easily find 10 reasons NOT to put on a trade after event. Search youtube, why there are no GURU who share their video on live trading? Everybody can draw nice chart after event, but if on live trading?

Conclusion: Forget about trend or no trend, head and shoulder or whatsoever chart pattern because it just makes confusing scenario. Build your own strategy is much more easier and much more comfortable rather than learning other people system. Live trading need to be done with under pressure, following other person will just makes you uncomfortable and pressure.

 

[NicholasM]

Haha... I agree this one, nice... Some people say Elliot Waves works, but is it after event drawing or it really works always? To me, it is just some after event drawing. As I always said, you can easily find 10 reasons if the trade works after event, in other hand, you can also easily find 10 reasons NOT to put on a trade after event. Search youtube, why there are no GURU who share their video on live trading? Everybody can draw nice chart after event, but if on live trading?

Conclusion: Forget about trend or no trend, head and shoulder or whatsoever chart pattern because it just makes confusing scenario. Build your own strategy is much more easier and much more comfortable rather than learning other people system. Live trading need to be done with under pressure, following other person will just makes you uncomfortable and pressure.

I agree with you there. As far as learning other people's tricks is concerned, I would rather understand how they came to various conclusions rather than the conclusion itself. As such, it is better to learn how to forge your own strategy rather than copying another person's strategy. What happens if they disappear from the market all together? Additionally, copying strategies can easily convert a trader into a trading Zombie, which I believe is a dangerous road to follow.