There are many trading strategies that different traders are using according to their understanding. But unfortunately, most of them don’t work, and 80% of traders face loss.
The main and important thing in trading is to learn about the market structure and the trend line, if you will get it then surely you will end your trades in profit.
In trading, indicators are used a lot, but they are mostly useless. Understanding the market structure and trend is the most important, and this will definitely help in taking good trades.
If you succeed in understanding the trend, then with the help of any indicator, you can take successful trades. But if you don’t understand the trend, then even with the best strategy, you can’t make profit.
That’s why it is said: "Trend is your friend." If you follow the trend, you will be successful. Otherwise, there is a 90% chance of loss. It will be better to invest your time in understanding about the market trend and how it changes
So, understand the trend and give your time to learn it. In this post, I will tell you how you can identify the trend, which will help you understand it much better.
First of all, you need to check the bigger time frame to see what condition the market is in — whether it’s following a trend line or moving sideways. If it is sideways, then you should wait for that phase to end.
If it is in a trend line, then with the help of higher highs and higher lows, you will get an idea of whether it’s a bullish or bearish trend. Still, if you don’t understand, then use EMA 200 to check the trend.
In a bigger time frame, check if the candles are below the 200 EMA line. And if they are near the support level, then it’s a bearish trend. But if the candles are above the 200 EMA and near the resistance level, then it’s a bullish trend. This is an easy way to understand the trend.
So, is it necessary to understand the market trend for good trading? Do you think that demand and supply zones help in identifying the trend? Would be glad to see your answers in the comments section.
I hope you find this post useful and informative. If you do, please remember to reblog it so that it reaches as many people as possible and that they can benefit the most from it. Also, remember to upvote, which will help me financially and grow my account.
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