The Best Trend for the Best Trading Options Now in Australia
It is to know if a trend is bullish or bearish! You will tell yourself that we smoked since someone just settled this detail. Yes, but if we change the time horizon, the result can be very different!
Here is an example speaking with AUD / USD in H4:
It’s quite disconcerting we admit. But do not panic, a simple tip will allow you to select the right trades. Finally we mean those who are most likely to achieve a gain. As we generally trade between H1 and H4, we seek to have for a given currency pair a graph for each of the periods H1, H2, H3 and H4. We determine the trend over the 4 periods. Then we look at the consistency of my results. If the trend is identical over the 4 periods, we tell that it is reliable and that we can go there. The problem is that such a well-established trend tends to turn around. If it was too easy, we would all be millionaires. Others are content to have consistency m15, m30, H1, and they carry out more trades. It’s up to you, it’s up to you to test because everyone reacts differently to the same trade. From Xtrade Australia you can find the choices now.
Note: even when the prices are trending, they move in corridors, that’s why even when there is a trend we draw 2 lines between which the prices evolve. To get this more precisely, install the “Bollinger bands” indicator.
Draw trend lines
To draw trend lines as in the previous examples, nothing very scientific. It is enough to locate the “invisible lines” on which the courses stumble, upwards or downwards. At first we have a little trouble identifying them, but over time it becomes natural. Practice graphics, even if you are not trading. On all trading platforms, a tool allows you to draw lines, so no excuses.
- Indicators that help you follow a trend
- The lines that you draw manually
- Pivot points / supports / resistances
- The RSI that can help spot a trend reversal
- The parabolic SAR and the super trend that give you the current trend
- Moving averages, a classic but essential tool
- Bollinger bands to see in which corridors the courses evolve