How to determine the trend

Why Trade With The Trend?
Now Putting the Odds in Your Favor
High Probability Trades
Less Risk
In Synch with the Market
The Problem With Trend
Determining if a trend is in place is one of the most difficult things to conclude.
One man’s uptrend is another man’s downtrend.

My Favorite Tools For determining Trend:
ADX (Average Directional Index),
STOCHASTIC OSCILLATOR,
DONCHIAN CHANNELS/BOLLINGER BANDS.

ADX
Average Directional Index
Settings = Standard 14-period default
Benchmark threshold level = 30
Determining Trend With The ADX
Readings above 30 indicate a strong trend
This tool is best used with any time frame on Stocks, Indices, and Futures
Trend with ADX
Trend with ADX

Trend with ADX
Trend with ADX































STOCHASTIC OSCILLATOR
Format = Slow stochastic
Settings = Standard 14-period default
Overbought level = 80
Oversold level = 20

Determining Trend With The Stochastic Oscillator
A strong trend is indicated when the Slow K reading is above the 80 level for 6 or more consecutive bars
A strong trend is indicated when the Slow K reading is below the 20 level for 6 or more consecutive bars
This tool is best used with daily bars on Stocks, Indices, and Futures

Determining Trend With The Stochastic Oscillator

Determining Trend With The Stochastic Oscillator
Determining Trend With The Stochastic Oscillator































Determining Trend With The Donchian Channels and Bollinger Bands
When all 3 Donchian Channels are moving in the same direction, a trend is indicated
When all 3 Bollinger Bands are moving in the same direction, a trend is indicated
This tool is best used in any time frame on Stocks, Futures, and Forex
Determining Trend With The Donchian Channels and Bollinger Bands
Determining Trend With The Donchian Channels and Bollinger Bands

Determining Trend With The Donchian Channels and Bollinger Bands
Determining Trend With The Donchian Channels and Bollinger Bands


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