Trend Is Your Friend

Trend is your friend. Never forget it. This technique is a good way to learn trading if you are a beginner. Before apply this trading technique you need to detect the trend of your asset on the chart. Now I explain how.

Downtrend

descending trend is defined by Lower Highs and Lower Lows. It means that every new Low must be lower than the previous, and so for the highers. 

​Uptrend

An ascending trend is defined by Higher Highs and Higher Lows. It means that every new High must be higher than the previous, and so for the lowers. 

There are many ways to use a trend following entry. So we can start from drawing a trend line linking 2 Lower Highs for a downtrend or 2 Higher Lows for an Uptrend.

trend is your friend downtrend
Downtrend
trend is your friend uptrend
Uptrend

Usually, during a defined trend, candles rebound on the trendline. Following a downtrend you will see that once a red candle closed rebounding on the trendline, trend go Bearish (sell), on the contrary, during an uptrend you will find a Bullish (Buy) trend after that a green candle closed rebounding on the trendline. Now we will se other ways to take an entry following the trend.

Combining the Trend Line with candlestick patterns

Another way to use the trend line is to compine it with candlestick patterns. This method is a little bit advanced for a beginner but  it is not so hard. To use a candlestick pattern I suggest to visit our Candlestick patterns section, or ask us for info. Anyway for all those know candlestick patterns is necessary to enter a trade when a pattern is forming on the trendline (Pin Bar, Doji, Evening Star, Three black crows or three white soldiers etc. etc.)

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