Re: The Trend
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What is "the trend" and how does one "follow" it?
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Sniper's response was great. This is how I use it and trade with it. I look at 3 charts (timeframes) of whatever I am trading. Usually 5 minute, 30 minute, and 60 minute.
I also use a moving average crossover. If the fast average is above the slow average on all 3 timeframes I consider it an uptrend and if fast is a below on all 3 a downtrend. I then make a trend following trade when the price rallies or dips to the slow average (on shortest chart usually 5 minutes). Obviously I use other things as well, such as trend lines and support/resistance for trade entries. But when I have met the condition of a trend on all 3 time frames and the price moves to the slow average on the short timeframe chart I am looking to enter the market in the direction of the trend.
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