Have you ever wondered which phase of a market trend gives you the most advantage when trading? Well, let me tell you about the sweet spot! It's the stage of the trend where the risks are LOW, and the rewards are HIGH. There are 3 phases of a trend: beginning, middle, and end. How about we dive into the characteristics of each phase? Beginning: When a trend is just starting, traders typically jump in and make their moves without a clear sign of where the price is going next, resulting in significant risk. But if they do manage to predict the trend movements accurately, the rewards are pretty sweet! Middle: Now, the middle phase is where things get really exciting! The trend has already gained some serious momentum. Using pullback signals, you can make some low-risk, high-reward trades. This is the GOLDEN stage you have been waiting for to hop on some order entries and score big. End: It's best to steer clear of placing orders during the final phase of a trend because the risk is high, and the potential rewards are low. So, how can you tell when the middle phase is kicking in and get some pullback signals for a juicy trade? Noble Cloud has some pretty cool features to help you out, which are Bar Min and Bar Max. Just keep an eye out for signals between those two points. Don't be afraid to play around with the Bar Min and Bar Max settings to match your style and preferences. For more information about this indicator, click here: https://renkokings.com/product/noble-cloud
%% SURE not the best risk-reward ,start of a trend; not sure the end of a trend is the ''lowest'', since a good trend will have already enriched one . A good trend tends tend not to end- that is for a good time + good % and or %%
Here are three common phrases of trends: 1. The trend is your friend. 2. Buy low, sell high. 3. Cut your losses short, let your profits run. Kidding aside, not all trends are the same. A reward/risk matrix is better done on trend types rather than their beginnings, middles and ends. Also, it might be useful to ask whether or not there is symmetry between a beginning and an ending.
%% BY definition ''the beginning'' of a good or very good is not worth much @ all LOL THAT + use rearview mirror+ side views + windshield forward looking to drive well+ profit. And buy hi + sell higher , especially if one like to trend study+ study more sometimes. Avoiding what one guesses is'' the trend end'' LOL could make sense with leverage or too much leverage LOL; and if one was 99 years old , that trend may differ from 33.777 years old business trends
How does one know what kind of trend err price action (corrections and ranges which is most of the time are not trends) they are in until it is plainly obvious?
%% DONT really ''know'' [ I dont believe in climate change scams/ but like weather forecasts, proba bilities, not weather predictions help. ] But super amounts of trend study could help; +more trend study helps .Losin' a bit on shorts[or inverse actually SPY \small loss can help a bit, today ] Savior post #3 may help also . Looks like you are a better than average chart reader; i study trends + super trends more than ranges + do all 3. Dave Ramey said readers are leaders + C Munger agreed. In honor of Charlie munger\almost put on some SPYV, today, but in hindsight , SPY-value not paid enough for me
You need to KNOW the mode the market is in. Knowing the mode--->correct modus operandi--->timely action--->staying on the right side of the market--->profits. "--->" means "leads to". If you don't KNOW and still insist on trading, you are just guessing and hoping. Sometimes you guess right, sometimes you guess wrong.
I don't see the table given with reward v's risk in the three phases of trends as valid. It is unrealistic and unhelpful to divide trends in this way because that's not how trend-following trading is done. Surely the highest risk phase of a trend is the very beginning since a trend which is not established, consistent and generating/benefitting from broad market support is most likely to fail. The end of a trend cannot be identified before it happens so nobody can avoid taking a trend-following trade in the trend ending phase. Obviously, after the trend has ended, nobody would be entering here anyway, as there is now no trend. And the middle phase is the part of the trend where the trader can pyramid their winners with any real positive expectation. This can massively increase reward with out of proportion to the increased risk. A more realistic guide with broader application is the much older relationship - trend-following trades are low return but high probability reversals and break-outs are low probability but high return
After the trade entry, everyone expects price to “trend” in the trade direction for some time. Prior to the trade entry, a trader has to figure out the following because they affect both risk and reward. When/where does my trend start, so I can get in early in the trend. When/where will my trend possibly end, so I can stay in the trend as long as possible. What initial stoploss should I use so I can stay in the trade as long as possible. How do I manage the trade to minimize any loss. How do I manage the trade to maximize profits without giving back all hard-earned profits.
Looking at a chart after the fact, early entry is the lowest risk highest reward entry. In real time, early entry is still the lowest risk highest reward entry. You don't really know when the trend will end, it can fail to continue at the start of any candle after entry. As a true trend follower, you want to get in as early as possible????