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Thread: What do you understand by trend trading?

  1. #1
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    What do you understand by trend trading?

    It is in my notice that many traders are saying trend trading, but they do not know how to trade the trend really. Trend is the main thing traders should aim for in the market, this is because market moves is the nature of trend traditionally. Except there is a reversal, then another trend would form immediately. But traders do not do this because they do have other alternative, and thereby gambles more in trading. I hope this thread will shed more light and understanding to such trader`s knowledge of trading the trend.

    What is trend? Trend simple means "direction". In other words, the trend of the market is the direction the market follows. While trend could be short term, medium term or long term.

    Attachment 11865

    HOW TO TRADE THE TREND: Looking at the above chart picture on EURAUD of 1 hour, Although in the picture market is trending for a long term (Based on the candlestick count), But it did not do this trending all along in a straight/smooth line. The market started from 1.45917 and finished the trend at 1.42245. But along the line, there were retracement, some of them were marked with the white arrow on the chart above.

    This simply means that; the trader have to be strict in trading the trend. You will not mind the side attraction of the retracement, but the long enduring trend of the market; until you are satisfied that a reversal is observed.

    INDICATORS AND SYSTEM FOR THIS: Although, it is tactical to know if a trend will continue or not, but indicators like moving average, MACD, Bollinger bands etc. are effective in knowing this. Also, trading system like trend-line, price action etc. will help the trader to know at intermediate trading whether a trend is continuing or not. And by this, the trader will know if to continue or exit

    NOTE: The best time frame to enjoy the trend trading is on the larger time frame. By this, i mean from 4 hours to 1 month time frame. This is how you will have the full benefits trend trading could give you. This is the way the large firms and banks trade. If you can be patient with trend trading, it really worth it more than any system you may adopt. HAPPY TRADING!

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  2. #11
    Trader Hukam's Avatar
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    There are many best moving average which you can use to know about the best market trend situation I personally recommend to use 200 EMA in trading its a powerful moving average which will give you a good idea about a uptrend and down trend you can add EMA 50 also for better result. I am using only 200 EMA right now in trading

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  3. #12
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    Trend is our friend and we have to respect our friend during trading. I learned a lot about trend following trading strategy in past and for me its one of the best trading so far in forex now days I am concentrating in support and resistance points and thinking to make a good combination of market trend and support and resistance points I think many good forum members are following this system like rina ji, hukam, khimi etc.

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  4. #13
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    awais.khan,
    do trading with follow the trend is the safest way, but traders need to complete the knowledge to know support resistance as the gate to enter and exit from the market, and also they need to know what method is used for trading and and what time frames is needed to indicate the true trend

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  5. #14
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    Its very important to know about our trading style first. Its very important to know about the support and resistance and trend line combination too we need a better confirmation analysis so it will be much better if we will try to combine our technical analysis and trend following based system. Time frame selection totally depend upon trading style

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  6. #15
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    Quote Originally Posted by Khimi234 View Post
    Its very important to know about our trading style first. Its very important to know about the support and resistance and trend line combination too we need a better confirmation analysis so it will be much better if we will try to combine our technical analysis and trend following based system. Time frame selection totally depend upon trading style
    In fact, the trend things might not be related to any support or resistance, but it is at times depending on the system the trader is trading the trend with. Trend trading might not be a single means to have a strong direction in the market, but it is a very lovely way to have success in the market if the trader is such one that is patient.

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  7. #16
    Trader lawners1791's Avatar
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    Quote Originally Posted by newentry View Post
    awais.khan,
    do trading with follow the trend is the safest way, but traders need to complete the knowledge to know support resistance as the gate to enter and exit from the market, and also they need to know what method is used for trading and and what time frames is needed to indicate the true trend
    yes to work of more as qualifying of the better customs as arranging prefers on defining of the higher precise with the chance on referring of the entry points with the use on running of the good indicator system to calls of the best on options with the order to put of the good margin by the exchange on arbitration.

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  8. #17
    Trader rinaji's Avatar
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    Quote Originally Posted by cozard007 View Post
    HOW TO TRADE THE TREND: Looking at the above chart picture on EURAUD of 1 hour, Although in the picture market is trending for a long term (Based on the candlestick count), But it did not do this trending all along in a straight/smooth line. The market started from 1.45917 and finished the trend at 1.42245. But along the line, there were retracement, some of them were marked with the white arrow on the chart above.

    This simply means that; the trader have to be strict in trading the trend. You will not mind the side attraction of the retracement, but the long enduring trend of the market; until you are satisfied that a reversal is observed.
    There is always a retracement in a long-term trend, and often makes traders trapped in a retracement and reversal patterns, sometimes we think that there would be a reversal, but then it was only a retracement, and sometimes we think this is just a retracement, but then retracement move into a reversal. Thanks for this useful thread my friend...

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    If you lose, be patient. If you win, stay humble

  9. #18
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    Quote Originally Posted by rinaji View Post
    There is always a retracement in a long-term trend, and often makes traders trapped in a retracement and reversal patterns, sometimes we think that there would be a reversal, but then it was only a retracement, and sometimes we think this is just a retracement, but then retracement move into a reversal. Thanks for this useful thread my friend...
    There is never a market that will move on the smooth trading curve, never, I have search the old historical charts and found that it has never been like that. It is only a means by which the traders will have their own mindset fixed towards the target they want in the trend trading, this is very good and interesting part of real trading.

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  10. #19
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    Quote Originally Posted by rinaji View Post
    There is always a retracement in a long-term trend, and often makes traders trapped in a retracement and reversal patterns, sometimes we think that there would be a reversal, but then it was only a retracement, and sometimes we think this is just a retracement, but then retracement move into a reversal. Thanks for this useful thread my friend...
    Reversal patterns and the retracements pattern are not the same, but they are almost the same thing if the trader is not careful. That is why some traders are not patient with the trend. I have one trading skills now on the 1 day trading chart, if i am lucky to trade the right trend, i will never leave the market until the reversal with the same system i used to enter the position goes against my side. This will effectively filter nay retracement.

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  11. #20
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    Quote Originally Posted by cozard007 View Post
    Reversal patterns and the retracements pattern are not the same, but they are almost the same thing if the trader is not careful. That is why some traders are not patient with the trend. I have one trading skills now on the 1 day trading chart, if i am lucky to trade the right trend, i will never leave the market until the reversal with the same system i used to enter the position goes against my side. This will effectively filter nay retracement.
    The reversal is actually the opposite of the trend trading, and all traders should bear this in mind. No matter what the trader is doing, he should notice that the trend will not be a straight slope, there will ne no recognition like that. But looking at the pattern, you can still see that it will either trace the long or short for a larger time duration.

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