I've been studying this for a while now and I'm having a hard time finding the trend in the time frame I'm looking at. For example if I like to trade a few times a week I'm going to be looking at maybe the one hour for hour time frame. I'm going to find my trend in the 4 hour and find my patterns and such in the 1 hour. My problem is how far do I look back for data on the 4-hour to find the direction I should be trading... There are so many trends within trends and if I go too far back I might actually be looking at the daily trend and if I don't go far enough I might be looking at a small time frame trend I need to know which swings to focus on and find the pullback.
Lots of randomness in trends, it will tell you nothing. It's like seeing flight paths and attempting to work out where the plane will land.
Well this is why they say 95% of the people fail. Out of all these answers only one person give something worth reading. Just for you guys that always give information that's useless. Use that time to read, use that time to figure out what you're doing wrong or what you need to work on. Then when you figure it out ask questions and you might get 10 answers that are useless but someone will give you an answer that will help and I'm sure it's the one person that is actually making money. So instead of wasting your time and mine use that time wisely. That's why this information is out here,it's so you can work on what you need to work on which is what I'm going to do. There is nothing anyone can tell me that's going to make me stop searching, learning and studying. So please don't even waste your time
So again my question is is there any books out there or any reading information or even videos that you guys recommend because I'm having a problem identifying the trend within certain time frames. Like I said if I'm looking at the one hour how much data do I look at to know if I should be going in the up direction or down direction. And again don't waste your time telling me not to read books are no good or whatever ignorant mentality you got going on. And if you're also having this problem , Don't say aren't we all is this a joke, take that time to do what I'm doing and figure out the answer to your problem. Look for help and ask questions And for the ones who are actually giving me good information thank you
If you use the search function on ET, there's plenty of discussion on trends. You can also use google. A trend is either two or three price points, but trend lines are not always flat, sometimes they curve, often they break, then reform. A trend may be steep or shallow, but a trend can be a random affair. Trend may run, then just as you step aboard, it collapses. Rather than look at trend, my suggestion, study volatility, it is better at providing information. Study volatility inside trends.
Understand that when a big player wants to buy a large volume of stock, they will typically run an algo to buy without tipping their hand and putting the price up on themselves. Forthwith, I would say read books on Algorithmic Trading, and learn to identify the algos (Slicing, VWAP, TWAP... many variants) and how they affect trendlines. If you can spot a specific algo running, you will make money... but it's not easy, They are designed to confuse you. Example: One version of VWAP will slice and adjust order sizes based on historical daily volume. If volume is historically high at the beginning and end of the day, and low in the middle, VWAP will follow that pattern. Your trendlines may show this as reversals, and this is VWAP doing its job--hiding intent from a technical frontrunner like you I have this one, and it's a good intro