Trend/Direction Simplified
February 18th, 2009
What has proven a valuable tool for us in determing and keeping track of the various trends at work in the different markets is a tool we call the “Trend Map” which first helps us avoid the back and forth price action of a counter-trending market, but also helps us to home in on trade signals in-line with the higher time frame trends.
One concept it took me a long time to grasp was the significance of the higher time frame trends on the lower time frame charts.
Regardless of what I “think”, or what I “think I see”, or worst of all what I ” feel”, the Trend Map below is going to keep me moving in the same direction as Mother Market, which is a lot easier than trying to go in the opposite direction.
DISCLAIMER: Futures, options and Forex (off-exchange foreign currency futures and options, or “FX”) trading involves substantial risk of loss and is not suitable for every investor. The valuation of futures, options and Forex may fluctuate, and, as a result, clients may lose more than their original investment.