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

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 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