How do you determine a trend?

 How do you determine a trend?

To determine the direction and trend of the price trend that occurs, it can be done in a number of ways either in a simple way, using analysis of price patterns such as price action and price patterns and using the trend indicator approach.

The approach to determining trends in a simple way is to see directly the position of price increases and price decreases that occur within a certain time frame by looking at historical prices in large time frames and small time frames (large TF / small TF) on a trading chart or Forex market chart directly .

Determining and identifying trends can also be done with the Price action analysis approach for example, price candle movements that move past historical prices within a certain period of time either are up or down in nature or move with high liquidity for a long time breaking through support levels or resistance levels both that create hill patterns and valley patterns. Here it will be seen how the balance of demand and supply dominates prices.

Finally, to determine a trend, be it a bearish trend or a bullish trend, the trend indicator approach is used such as the Moving average (MA), MACD, Parabolic SAR, Ichimoku indicator to support the quality of analysis carried out in the placement of an ideal open position combined with other indicators such as momentum indicators, volatility indicators and market strength indicators.

• Why when identifying trends viewed from different time frames the conclusions will be different?

This is related to market dynamics that affect prices and also dynamics of market behavior in responding to the conditions that occur which are influenced by the sentiment that shapes them. Of course the market situation of a month ago will be different from the market situation a week ago and will be different from the market situation for the day, the hours and the minutes which are shown by changes in large time frames, medium time frames and small time frames due to market dynamics factors that influence the price is also different.

Therefore, it is better if to get an ideal analysis, we have to adjust to the trading system used, for example, the short-term trading system must focus on small time frames (Tf M5, TF M 15 and TF M30), then for daily trading you must focus on Time Medium frames (TF M30, TF H1, TF H4, TF D1) while for long term trading activities can combine large TF, medium TF and small TF). By understanding the time frame pattern that is adjusted to the trading system used, it can reduce friction and conclusions in analyzing the market.

• Does a trend really exist?

This question is actually simple but very dilemma and confused to answer it. There is a trend that really exists and can be seen directly from the price chart displayed either without using analysis tools or using analysis tools. The definition of trend has been stated above as a condition of currency price movements that move up or down significantly within a certain time which forms a pattern of peaks and valley patterns that break through the nearest support and resistance levels.

Trend Is your Friend