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Thursday, August 9, 2012

How to follow the trend


As everyone knows to have to maximum profit, we need to buy the deep and sell the top. It seems to make sense right? How can we apply in your trading? Price action? MACD? Or RSI??
 Take as the picture above, which way is the trend going? It is going up. Well, make sense for what you see now. But just try to zoom out a bit.
   So, which way is it going now? Yea, I think anyone of you would say it’s an downtrend and that is the true answer of the trend that is going on. Other than looking at the bigger picture, to look for trend, you can try on the different time frame which means look into a larger time frame.  As example 15 minutes, you can look into 1 hour or 4 hour chart to determine the trend. These can make clearer to you if you have more practice.

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