Why Trade With The Trend?
Now Putting the Odds in Your Favor
High Probability Trades
Less Risk
In Synch with the Market
The Problem With Trend
Determining if a trend is in place is one of the most difficult things to conclude.
One man’s uptrend is another man’s downtrend.
My Favorite Tools For determining Trend:
ADX (Average Directional Index),
STOCHASTIC OSCILLATOR,
DONCHIAN CHANNELS/BOLLINGER BANDS.
ADX
Average Directional Index
Settings = Standard 14-period default
Benchmark threshold level = 30
Determining Trend With The ADX
Readings above 30 indicate a strong trend
This tool is best used with any time frame on Stocks, Indices, and Futures
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| Trend with ADX |
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| Trend with ADX |
STOCHASTIC OSCILLATOR
Format = Slow stochastic
Settings = Standard 14-period default
Overbought level = 80
Oversold level = 20
Determining Trend With The Stochastic Oscillator
A strong trend is indicated when the Slow K reading is above the 80 level for 6 or more consecutive bars
A strong trend is indicated when the Slow K reading is below the 20 level for 6 or more consecutive bars
This tool is best used with daily bars on Stocks, Indices, and Futures
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Determining Trend With The Stochastic Oscillator |
Determining Trend With The Donchian Channels and Bollinger Bands
When all 3 Donchian Channels are moving in the same direction, a trend is indicated
When all 3 Bollinger Bands are moving in the same direction, a trend is indicated
This tool is best used in any time frame on Stocks, Futures, and Forex
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Determining Trend With The Donchian Channels and Bollinger Bands |
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Determining Trend With The Donchian Channels and Bollinger Bands |
How to determine the trend
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Oleh
Piratebay
