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  1. #1
    Veteran Member Ronnel's Avatar

    Do you... "Trend is your Freind" ??? :) !!!

    Hi lads!

    It’s been quite some time but I’m always here watching silently (creepy stalker mode, lol!)

    The reason for this is that I just want to share what I have observed based on “”the trend is your friend” thingy… so here goes…

    I met several traders and also have read many post and articles talking about this but when I look at their charts, it’s a no brainer to detect that they don’t really understand what it means or are not applying it.
    Based on my understanding and experience, I know that trading with the trend means that my trades must be going with the trend and not placing trades going against it. When I was a newbie and was just getting a bit better on my trading skills I plotted trendiness to show the direction of the trend but the sad thing is that since my trendlines created a channel, it was not rare for me to place trades that went against the trend because I thought that I’ll just place a reverse trade targeting the opposite trendline. It did work and I can say that I’m quite good at doing it but the thing is that I’m not trading with the trend but inside my puny brain I still justify that I’m trading with the trend and the reverse move that I did was an exemption… Deep in my mind I have set some rules and one is to trade with the trend but doing reverse trades along the way is “forgiven” or it doesn’t count since I’m going with the channel even if my trade is against the trend but I still justified that especially when my trade landed ITM.

    I’ve seen many traders doing the same thing. They talk about “the trend is your friend” but trades in reverse. Based on my trading experiences now, I think I can say that I’ve grown over it. One big reason why I saw myself doing this is because before my trading skills were very limited and all that I could think about is trading at overbought and oversold areas especially when I was using oscillators. I still do believe OB-OS but not much especially that I’m a fully naked trader now and I have minimised the urge of trading reverse at OB-OS areas. I’ve seen many traders who get super excited (maybe wet their pants, lol) when they see price and that their indicators at at OB-OS areas. Yes OB-OS does work but the funny thing is when they placed a trade in reverse and price just went going straight. I’m sure we all have this kind of experience…

    So what’s trading with the trend really means for me and do I really understand it’s real meaning and am I applying it when I’m trading? My answer now is a big yes. Now I basically place trades going with the trend but if I placed a reverse trade (which I find rare now), I’ll just say that I’m just channeling and just doing some bouncing-ball action in hope to justify my excuse, lol! For me I view the market having 3 different personalities, one is trending, one is ranging and one is flat or dead. I only trade trending and ranging markets and the strong rule that I follow are if it’s a trending market that I must trade with the trend. If it’s a ranging market is that I’ll still trade with the trend, meaning that I’ll place trades only when I see a strong momentum and only do short burst trades aiming at my target point but still have the general trend back in my mind with the understanding that the reverse trade that I have taken is not a high probability trade since I’m trading against the trend.

    I’m a freestyle fully naked trader and I’m not bound to any rule. I trade anywhere and anytime on the charts and I don’t give much focus on OB-OS. If I see price going that way, then I’ll trade that way. I guess that these past few months that I’m really starting to know the meaning of trading with the trend. It may be a short lived trend or a long general trend but I noticed that going with it gives me a much higher chance to be ITM. It took me some time to learn, understand and apply the meaning of trading with the trend and I can say that it really boosted my ITMs more than before. It’s really hard to show this in writing but I have shared some of my live trades on Skype Group. Those too may be hard to digest since I rarely plot trendiness and only do visual analysis but most of them are trading with the trend.

    Basically I think that I understand what “the trend is your friend” thingy is, but it’s sooooo deep so I guess that I still have to learn more…

    Please ask this question to yourself… Do you really know it’s real meaning???
    Last edited by Ronnel; 11-02-2016 at 09:42 AM.
    Duct Tape can't fix OTM

  2. Thanks me_jiban thanked this post
  3. #2
    Rookie Member me_jiban's Avatar
    It's really helpful sometimes I place my trade against the trend. I have a question for you how to understand trend batter.. do you follow higher high/lower low.. or trend channel or anything else If I may ask..
    Once again thanks for sharing this..

  4. #3
    Master Member SeasaltMcFish's Avatar
    Thanks for explaining Ronnel!

    Maybe you can post some example pics here?

    I'm a stubborn reversal trader, but agree completely with the trend thing. My way of avoiding trading against the trend is not trading when a trend occurs, but these days, I'm adding entries with the trend too.

    I always test trades with and against the trend, to see the difference in outcome. That's because I'm a number fanatic I guess

    In live trades, I always try to trade with the trend or in ranges. Flat market trading is asking for trouble.

    When trading in ranges, I take trades in both directions, but I have EMA's to show trend on the bigger time frames, so I don't have to open them too. When an EMA is showing me there's an underlaying trend on the higher time frames, I only trade with the trend on the higher TF.

  5. #4
    Legendry Member milos's Avatar
    Just follow the trend.

  6. #5
    Legendry Member Okane's Avatar
    That's a good point Ronnel. Something I have also been mentioning lately in the videos when "target trading".
    Better to go with the trend on its way to the target rather than just trading the target and hoping for a reversal UNLESS
    that target is inside the trend like a higher low or similar so I fully agree.


    Forgot to add, I do trade reversals too but let's just say it's not for the "faint hearted" hahaha
    Going with the trend itself reduces risks and that's why the trend is our friend.
    Last edited by Okane; 11-02-2016 at 01:28 PM.
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  7. #6
    Specialist Member Million Dollar Baby's Avatar
    Quote Originally Posted by Ronnel View Post
    Hi lads!
    I’m a freestyle fully naked trader and I’m not bound to any rule. I trade anywhere and anytime on the charts and I don’t give much focus on OB-OS. If I see price going that way, then I’ll trade that way. I guess that these past few months that I’m really starting to know the meaning of trading with the trend.
    It shows that you have progressed and learned a lot. Once a trader starts understanding naked chart movements, life gets easier.

    As for as trading with the trend is concerned, I am also a supporter of it but at the same time I would say a trader must be able to calculate probability of "continuation of trend". It can be calculated by looking at trend patterns, candle stick patterns, S/R levels etc (whichever works best for you).

  8. #7
    Legendry Member willyw's Avatar
    Quote Originally Posted by Ronnel View Post
    Hi lads!

    Itís been quite some time but Iím always here watching silently (creepy stalker mode, lol!)

    The reason for this is that I just want to share what I have observed based on ďĒthe trend is your friendĒ thingyÖ so here goesÖ

    I met several traders and also have read many post and articles talking about this but when I look at their charts, itís a no brainer to detect that they donít really understand what it means or are not applying it.
    Based on my understanding and experience, I know that trading with the trend means that my trades must be going with the trend and not placing trades going against it. When I was a newbie and was just getting a bit better on my trading skills I plotted trendiness to show the direction of the trend but the sad thing is that since my trendlines created a channel, it was not rare for me to place trades that went against the trend because I thought that Iíll just place a reverse trade targeting the opposite trendline. It did work and I can say that Iím quite good at doing it but the thing is that Iím not trading with the trend but inside my puny brain I still justify that Iím trading with the trend and the reverse move that I did was an exemptionÖ Deep in my mind I have set some rules and one is to trade with the trend but doing reverse trades along the way is ďforgivenĒ or it doesnít count since Iím going with the channel even if my trade is against the trend but I still justified that especially when my trade landed ITM.

    Iíve seen many traders doing the same thing. They talk about ďthe trend is your friendĒ but trades in reverse. Based on my trading experiences now, I think I can say that Iíve grown over it. One big reason why I saw myself doing this is because before my trading skills were very limited and all that I could think about is trading at overbought and oversold areas especially when I was using oscillators. I still do believe OB-OS but not much especially that Iím a fully naked trader now and I have minimised the urge of trading reverse at OB-OS areas. Iíve seen many traders who get super excited (maybe wet their pants, lol) when they see price and that their indicators at at OB-OS areas. Yes OB-OS does work but the funny thing is when they placed a trade in reverse and price just went going straight. Iím sure we all have this kind of experienceÖ

    So whatís trading with the trend really means for me and do I really understand itís real meaning and am I applying it when Iím trading? My answer now is a big yes. Now I basically place trades going with the trend but if I placed a reverse trade (which I find rare now), Iíll just say that Iím just channeling and just doing some bouncing-ball action in hope to justify my excuse, lol! For me I view the market having 3 different personalities, one is trending, one is ranging and one is flat or dead. I only trade trending and ranging markets and the strong rule that I follow are if itís a trending market that I must trade with the trend. If itís a ranging market is that Iíll still trade with the trend, meaning that Iíll place trades only when I see a strong momentum and only do short burst trades aiming at my target point but still have the general trend back in my mind with the understanding that the reverse trade that I have taken is not a high probability trade since Iím trading against the trend.

    Iím a freestyle fully naked trader and Iím not bound to any rule. I trade anywhere and anytime on the charts and I donít give much focus on OB-OS. If I see price going that way, then Iíll trade that way. I guess that these past few months that Iím really starting to know the meaning of trading with the trend. It may be a short lived trend or a long general trend but I noticed that going with it gives me a much higher chance to be ITM. It took me some time to learn, understand and apply the meaning of trading with the trend and I can say that it really boosted my ITMs more than before. Itís really hard to show this in writing but I have shared some of my live trades on Skype Group. Those too may be hard to digest since I rarely plot trendiness and only do visual analysis but most of them are trading with the trend.

    Basically I think that I understand what ďthe trend is your friendĒ thingy is, but itís sooooo deep so I guess that I still have to learn moreÖ

    Please ask this question to yourselfÖ Do you really know itís real meaning???
    Great improvement, Ronnel

  9. #8
    Legendry Member Michael Hodges's Avatar
    What I find is that many people think that the market will always be trending, or that trends develop faster than they really do. The market is not always trending, quite the opposite, the market is most often moving at random and only during times of significant changes in outlook or fundamentals do well defined tradable trends exist. For the most part we can look for a trend, and like a wave in the ocean, try to catch it and surf it to profits. Sometimes it works, sometimes better than others, sometimes you wipe out and sometimes the sharks bite. What's best, and what you hit on with the channeling etc idea is that you have to ready all the time for whatever kind of signal is present, if the market gives you a crappy little trend that you can ride for a trade or two and then fizzles out it is likely the opposite trade will work next as the market reverses its random gyration within whatever near, short, long term trading range is dominant today.

  10. #9
    Solid Member Trapped's Avatar
    In general I love to trade on the trend, the main thing is to understand when it changes its direction, and in what diapozon the price mores, and then you'll be alright)

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