Trend Analysis for REAL Traders - MT4/MT5 Resources
Hey everyone,
I'm new to Forex Factory - but I wanted to post some information I have that many new traders seem to miss. This is simple common sense trend analysis trying to accurately find the average before the range.
Take a look at the chart below - you will see that traditional trend lines and pitchforks often fail because in reality, simply connecting a few highs and lows and then dissecting the bounces or troughs will actually give us the wrong future trend. However, if we use the high - before the rebound (in a down move, or vice versa, in an up "pop"), we will find a trendline that runs through the subsequent move.
Then, if we take the high (or low in the opposite case) and pull the trendline past the bounce (or trough) where the previous trendline intersected... we are left with an exact pitchfork midline - where pitchforks and trendlines typically fail. Then, draw a parallel line above and below - you will see that we could have spotted the short entry before the falling resistance occurred.
Since many people fail to understand where and how typical trending tools fail, I thought it was important to share this information with you!
http://www.forexfactory.com/attachme...1&d=1212603113
I'm new to Forex Factory - but I wanted to post some information I have that many new traders seem to miss. This is simple common sense trend analysis trying to accurately find the average before the range.
Take a look at the chart below - you will see that traditional trend lines and pitchforks often fail because in reality, simply connecting a few highs and lows and then dissecting the bounces or troughs will actually give us the wrong future trend. However, if we use the high - before the rebound (in a down move, or vice versa, in an up "pop"), we will find a trendline that runs through the subsequent move.
Then, if we take the high (or low in the opposite case) and pull the trendline past the bounce (or trough) where the previous trendline intersected... we are left with an exact pitchfork midline - where pitchforks and trendlines typically fail. Then, draw a parallel line above and below - you will see that we could have spotted the short entry before the falling resistance occurred.
Since many people fail to understand where and how typical trending tools fail, I thought it was important to share this information with you!
http://www.forexfactory.com/attachme...1&d=1212603113
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