Identifying Trend

Up trend : A series of successive higher highs and higher lows.

Down trend: A series of successive lower highs and lower lows.

down trend

The simplest method is : look at the 2-3 year daily chart. If it’s up, the trend is up. If it’s down, the trend is down.

Look at a daily chart. If price action is lower on the right side of your screen than the left, it’s a DOWNTREND.
If price is higher on the right side, it’s in an UPTREND.

up trend

The problem with MACD or other oscillators is that they stay over bought/sold for long time so it is very tricky just to rely on them.

Fancy trend indicators are all (all I’ve come across) based on average price and/or it’s relation to current price.

 

Other Methods:

I) I came back to the old idea = moving averages. Big boys use 50, 100 and 200 days moving averages. If the 200 day-moving average is up, the trend is up.

II)Use the combination of the Parabolic SAR and MACD histogram very useful. Enter long when the Parabolic SAR line moves below the price and the MACD histogram crosses up from negative to positive territory. Go short when the Parabolic SAR line moves above the price line and the MACD histogram moves down from positive to negative territory.