hey hey what's up my friend so today's video is for you if you are the type of trader that is always really struggling to identify the direction of the Train right because I'm gonna share with you five trading tips and techniques to identify the direction of the trend
so you don't get confused right so keep watching okay so the first tool that you can use to help you identify the direction of the trend is a line chart so for example if you look at this right this is a normal typical candlestick chart and for those
of you who are seasoned right you might probably guess really that you know hey you know the trend is towards the upside but for newer traders who are struggling right to even see this right you can use a line chart to help you better visualize it here's an
example right this is the same line shot as you saw earlier and because you're only focusing on the lines right the trend now becomes more apparent so if you're often right struggling to identify the direction of the trend try changing it to a line chart and you might
help you see better okay the second technique right that I want to share with you is price action right how you can actually use price action to identify the direction of the trend and it's quite simple really what you're trying to do is to locate the swing high
and swing lows in the market because you know in an uptrend it consists of higher highs and higher lows so in this example you can see that you have a series of higher lows higher lows higher lows higher lows and higher lows right so this tells you that
the general trend is towards the upside and vice-versa if you see right a series of lower highs right in this case a series of lower highs lower high a lower high a lower high a lower high it tells you that the trend is towards the downside okay however
right I do agree that you know quite a number of you are actually struggling with this concept because often you can see that the price makes a lower high but what if the price at this point makes a higher low right at this point it makes a higher
low doesn't mean that the downtrend is over so there can be some little bit of subjectivity to it right because if you think that at this point right the trend is over and you go long right you might be sub tries to see that the train actually continuing
towards the downside so how do you actually know sort of you know handle this conflict right so this is where you can use a tool like a moving average right to overcome this particular ambiguity or conflict so the moving average is a simple indicator that pretty much sums
up the historical price on the chart so for example a 200 period moving average simply takes the the closing price over the last 200 candles right and plot it as a line on your chart so as you can see over here in this case right now this black
line over here is the 200 period moving average so a very simple technique that you can use is that if the price is above the 200 period moving average then the long-term trend is up okay let me repeat once more if the price is above the 200 period
moving average then the long-term trend is up so this means right you don't have to know take into account the the swing high and swing lows in the market so for example in this case you at this point in time right you have a swing a lower high
over here right a lower high right but because the price is still above the 200 period moving average the long-term long-term trend is still up so you don't have to worry about you know whether it makes a new swing low swing high and whatsoever so this is the
usefulness right of the moving average and on top of it it can also help you define write different types of trends so for example I said earlier the 200 period moving average can help you define the long term trend and as well write the 50 period moving average
as what you've seen down here can help you define the medium term trend right so I use the 50 period moving average to help me define the medium term trend and if you define a shorter term trend and you can use the 20-period moving average in a concept
is the same if the price is above the 20-period moving average then the long I mean this the short term trend is up okay so is that the concept is the same it's just the the number of moving average that you are using to define the different types
of train the forth technically I want to share with you is what we call a trend line so a trend line is something like support and resistance but the only difference is that a trend line is diagonal it's a pointing in towards a direction okay so you can
see that a trend line in this case right tells you the direction of the trend as well because if that and line is pointing higher it's slanting upwards it tells you that the trend it's a towards the upside and also just like the moving average right the steepness
of the trend right the steepness of it the angle of it tells you the strength of a trend if you see a trend right that is very steep right almost parabolic it's telling you that the trend is really strong and if it goes almost like a straight line
right it tells you that it's really really strong and a move is unable to sustain forever it could possibly no reverse back in a short run so when you see the strengh of a trend night where the trend line gets steeper and steeper it's telling that the trend
is getting stronger right and the move is not sustainable and it is likely to reverse back anytime soon okay so trendline is another way that can help you identify the direction of the trend and gauge the strength of it and also write another variation of a trendline is
what we call a trend channel right so a trend channel is like a trend line the only difference is right you have this upward boundary over here so the book so if you remove this upward boundary this is just a typical trendline that you see right but now
with this upward boundary it kind of gives you a chem write to tell you where the price where the market may potentially find resistance so you can see that over here the price bounce of the boundary again this money exists then it goes back in then right now
we know if you ask me right over here you might find some selling pressure looking around it as well so this is the power of a trend channel it's like the trend line but you know it's just two parallel lines to kind of identify the area of value
and the area where the price might find resistance okay and one extra tip to share with you is if you're trading trendline it is very useful right to draw an area because often people think that you know the moment price breaks the trend line it means the reversal
is about to come that's not true because a trendline is an area on your chart even though it's called trendline it should be called trend area if you ask me so you gotta draw another parallel line something like this or maybe you're just ROI I'll try my best
right try my best so you get something like this right where it shows you that this is an area on your chart okay like this is an area on your chart so just because the price breaks the trend line doesn't mean the train is about to reverse right
if you treat it as an area right more often than not you'll see that there the area would hold up and the price would reverse back in the into its original direction okay so this is a another tip right to share with you on drawing trend lines or
trend channel okay so with that said let's do a quick recap – what if just learned right number one you can use a line chart to help you define the trend it's useful especially when there is some ambiguity right so you can strip off all the wicks the
body of the candle and just focus on the line second thing is you can use this price section right you to read the higher highs and higher lows in the market you can also use moving every if you really want something that is objective right if you're not
good at you know reading price section right you might get confused use moving average to help you define the long term medium term and short term trend you can also use trend line it gives you the idea to what is the direction of the trend plus the strength
of the trend right the steeper the trend line the stronger the trend but do bear in mind right I think as you've seen right like that the Bitcoin the dot-com bubble when the price goes parabolic when the trend is almost like one straight line right you know that
move is not sustainable and when the reversal come it's gonna be very strong towards the downside so I'll say that is more useful to actually trilliums stop-loss then looking to get on bought the tree and last but not least we have talked about trend channel it's like a
trend line but it's just two parallel lines they help you identify the boundaries right the area of value and the area where you know resistance where opposing pressure might potentially come in okay so if right you have enjoyed what I just shared and you want to learn more
about my trading strategies and techniques go down to my website trading with Rainer comma it's over here to top the link over here right and you scroll scroll down to the bottom right there is a couple of trading guides for you right one is to write trends in
the market right the ultimate trend following guide talking about how you can actually write big trends and market and the ultimate guide to price action trading how to actually better time your entries and exits these two guides are completely free just click this blue button and I'll send
it to your email address for free okay so that's it I have come towards the end of this video if you enjoyed it right hit the thumbs up button subscribe to my youtube channel and if you've any questions leave it in the comment section below and I'll do
my best to help okay Anna talk to you soon you
