Trend Following

Trend following explained

When the market is trending, you have a greater chance of being profitable by placing trades in the same direction as the trend on lower timeframes.

If the Daily or Weekly charts are trending up, you can look for long trades on lower timeframes such as the 12 Hour or 4 Hour chart. Conversely, if the Daily or Weekly charts are trending down, you can focus on shorter-term trades on lower timeframes.

If the Daily and Weekly charts show a strong bearish trend, you can increase your chances of being profitable by looking only for short trades. To identify the major trend, simply go to higher timeframe charts such as the Daily, Weekly, or Monthly.

To identify the major trend, go to a longer-term chart such as a daily, weekly, or monthly. If you are scalping on a shorter time frame, you might also look at medium term charts like the 12-hour or 4-hour to determine the medium term trend.

Alpha Trend HMA, Momentum Waves, or Dashboard can all help you identify the current trend on each timeframe at a glance.