TaherJalili

"micro trends" or miniature up trendsniature up trends

Education
BINANCE:ETHUSDT   Ethereum / TetherUS

Every major trend is going to have one thing in common
A series of higher high and higher lows, or a series of lower highs and lower lows.

Once you understand how to identify these trend patterns and the overall direction of a market, you can catch a move and stay in for a much larger trending move
You can apply this type of setup to intraday and end of day trades.
If you are having a hard time finding the trends, take a step back and look at the major turning points, are they going up or are they going down

A lot of times traders get caught up in the noise of the markets and lose focus, but the market is always going to tell you where it is heading
Do not worry about finding the top or the bottom, we are going for the middle 80%..
That is where the money is at

Once you enter into this type of trend following trade.
You manage stops by trailing them just behind the highest high or lowest low
This will guarantee you stay in trade as long as the trend continues your direction
If a previous high /low is broken, the the market is entering consolidation or reversing


Now that you know how to identify what a trend is, you will start to see"micro trends" or miniature up trends, within the context of major down trend or miniature down trends, within the context of major up trend.

These micro trends often times give us great entry opportunities to jump back in when a major trend resumes its original direction

When you see a short-term series of higher low, higher high, within the context of a major down trend, draw a trend line connecting the lows. When the trend line is broken, you enter short.


When you see a short-term series of lower high, lower lows, within the context of a major up trend, draw a trend line connecting the highs, when the trend line is broken, you enter long.

Disclaimer

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