Friday, April 5, 2013

FAQ : Trend trading

FAQ: Trend trading:

Q:How much frame is required for trend trading?

A: three time frame required for trend trading
Frame 4 hrs chart for detection of trend, Frame 1hrs for viewing chart, Frame 15min for entry or exit

Q: 4hrs trend is down, 1 hrs chart trend is down,15 min chart trend is up what to do.?

A: the total trend is down, but min shows correction, So enter trade at the end of correction.

Q: Which time frame is correct for day trading

A: 1 hr chart

Q: What factor influence the daily trading mostly?

A: News, News,,News!!!

Q: How to identify trend?

A: We use some trend indicator, trend line, trend channel for trend detection. But trend is time dependend

Q: How can we measure the trend strength?

A: We can Use momentum indicator(MACD,RSI,ROC,Williams %R)
Projection and Depth of momentum

momentum indicator is used to see trend strength, not the trend.




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