Today’s live forex trading session is based on Identifying Trends in Forex using TradingView, it was hosted by George FX as RP is on vacation. George is 35 years young and a graduate of the University of Toronto’s, Financial Trading and Options Certificate. He is currently underway to write the Canadian Securities exam in 2020.
Identifying Trends in the Forex Market
This live session is catered towards beginner traders, however it also serves as a good refresher on University level theory, honing in on the 2nd tenet of the DOW theory which states that:
“The Market has 3 trends”
Always good to see things come in threes! Make sure to watch the video and remember some of these key points:
Primary Trend (Tides)
- Longer timeframes, 9 months to 2 years
- Stick to a year over year analysis
- Sticking to Year over year (starting with Jan 01, 2019), reinforces the business cycle mentality, this way your analysis lines up with corporate earnings which line up nicely with FX news such as NFP, Manufacturing index etc
- Don’t be shy and plot some previous years as well!
Secondary Trend (Waves)
- Inside the Primary trend
- 1 to 3 months
- Stick to a quarterly analysis based on the y/y above
- This also reinforces that your analysis times with Business cycles
- Not so much important for the currencies themselves but great for fundamentals coming out!
- This also reinforces that your analysis times with Business cycles
Minor Trend (Ripples)
- Considered “noise” for value investing
- For day trading becomes your Primary Trend on lower time-frames think in fractals.
TradingView Tips when Identifying Trends
- Be aware of the Time!
- it’s easy to forget that the chart is on an X, Y plot and that X is your time
- where X meets the lower left corner of your screen is very important
- use the vertical line tool to draw your previous times areas so that you can quickly zoom in and out of your charts
- Don’t forget to lock in your trends after you place them so that they don’t slide around when you zoom in to smaller time-frames
- Colour code each of the 3 trends (place the colours on a sticky note on your monitor)
- George uses less vibrant colours for the Primary Trend, and something more vibrant for the Minor Trend
- Add the Volume Profile on your chart
- this will give you a better insight into where price likes to go
Don’t forget to check out last Friday’s live session hosted by RP Forex, where he breaks down this current weeks expectations.
