We often hear such famous Wallstreet quotes “Do not fight the trend” or “The trend is your friend”. The whole purpose of technical analysis is to identify the trend in early stage. Then what is a trend? In this topic, we will define what a trend is and its applications.
What is a trend
Types of Trends
How to draw a trendline
- A trend tends to persist until it have a sign to reverse. Then if you indentify a right trend, do not exit your position too soon. Inversely, if you are on wrong side, alwasys remind yourself Do not fight the trend and let price hit your stoploss order. Never change or remove stoploss order.