Identifying Market Trends

14 Mar

When doing market trends analysis you are looking to identify not only the direction the market is moving, but whether or not it is moving in any direction at all. These are some things we look for when identifying the market trends.

Questions to ask when Identifying the Trend

  • Are we in a trend or counter trend on the monthly, weekly, and daily timeframes?
  • Are we in a trend day or choppy day on the 15-min?
  • Is volume on the 15-min chart constant or advancing/declining?
  • What is volume for the first 30-minutes of trading?
  • Are we within value?
  • Are we within the last 3 days high and lows?

Trend Day Characteristics and Setups

In a trend day the market will trade to a pivot, consolidates and move higher.

Wait for a break of a pivot level and trade in the direction of the trend break at a retest and 50% level.

Trends tend to reverse after 3 days.

After 6 or 7 days in a trend they tend to lose steam.

Choppy Day Characteristics and Setups

In a choppy day the market will move to a pivot and reverse.

Fade pivot levels at 50% levels once the market approaches them.

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