May 28, 2010 15:31

How to Detect a Trend or Range

Posted In: Forex Q&A
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Detecting a trend is not hard if you clear your mind of emotion and look at what the charts are showing you. The easiest way I can explain it is this:

1) Look at the daily chart. Does the price go from the top-left to bottom right of your screen? If yes then we are in a long-term DOWNTREND. Does it go from bottom-left to top-right? If yes then we are in a long-term UPTREND.

2) Look at 4h chart. Does the price go from the top-left to bottom right of your screen? If yes then we are in a medium-term DOWNTREND. Does it go from bottom-left to top-right? If yes then we are in a medium-term UPTREND.

3) Look at 1h chart. Does the price go from the top-left to bottom right of your screen? If yes then we are in a short-term DOWNTREND. Does it go from bottom-left to top-right? If yes then we are in a short-term UPTREND.

If the price ever ends about where it started then the trend is mixed, meaning we are potentially in a range. The more times price bounces between support and resistance in a range the stronger that range is.

4 Comments on "How to Detect a Trend or Range"
  1. Avatar of pipsy
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    Comment left on:
    May 28, 2010 at 15:51
    pipsy says:

    i like the way you simplify it. easy does it, if only we all can take out the emotional investment and look at it from a technical point of view.

  2. Avatar of seeker
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    Comment left on:
    May 29, 2010 at 00:38
    seeker says:

    hi,
    i agree if only we ignore our emotions.

    just a a thing, shouldn’t it read: “from the top-left to bottom RIGHT of your screen” instead of

    “from the top-left to bottom LEFT of your screen”

    thanks for your everyday rare and incredible generosity

    JP

    • Avatar of piphut
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      Comment left on:
      May 29, 2010 at 01:03
      piphut says:

      Yes you are correct, thanks for catching that

  3. Reply
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    Comment left on:
    October 30, 2010 at 11:15
    saharaview says:

    so clear thank you all

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