How Good are you in identifying the Trend. There is a small Visual Exercise for you to Understand the Concept of Trend. This is an Important process , so watch all images carefully.

Look at the example of the chart below. 

Seeing the Above Image you would say the Trend is Down.

Now Look at the Below Image

Seeing the ABove Image , You would say the Trend is Sideways

and Look at the last chart below and tell the Trend

Seeing the Above image you would say the Trend is Strong up.

You would be Amazed to know all three are of same Bank Nifty 5 min chart just zoomed out at different Levels. Your view of trend differs as you zoom out the charts. 

The Final Image would show you all three Below. 

The Same Chart at different zoomed levels shows you different view of the market. 

A Trader zoomed in closely would say the Trend is Down ( marked as Image 1 ) refer above image , Another trader who zoomed out a bit would say the Trend as sideways (Marked as image 2 ) and another trader who zooms out even further would say the Trend is Strong Up. 

How can a traders view of TREND differ from just hitting a single zoom out button , if there are varied view of the Trend what chances is the Trade being placed turns out to be a success. 

But then what is the right way to do it ?

The Answer is to know What phase of the Market are we in by Using price action.  The image 1 where it shows a downtrend is essentially a bear Leg in a Trading Range , likewise only if you determine the phases of the Market you would know the trend of the market and place Trades  with Absolute clarity. Else we would have different view of the same chart and place random trades leading to negative results over the long term.

We teach Advanced Price Action course ( one to one online )  , By price action we does not refer to Pattern trades. Pattern trades are not effective in long term as a patterns efficay also depends on the Context in which it is appearing. Do feel free to call or watsapp 7373339777 to discuss effective price action strategies for Day Trade / Swing Trade - Index Trading ( nifty and Bank Nifty ) and Stocks

Happy learning

Cheers !!!

Bharath

7373339777

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