A look at the different sectors in the financial markets and where trend trading opportunities are right now.
I hope you’ve enjoyed my weekly market analysis! As always, comments are welcomed and encouraged. Cheers!
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Hi Rayner,
How would you decide if a trend is indeed a trend? For example, Bunds are definitely in a trend, ignoring the fundamental macro perspective for a while, if the market changes direction, when will you decide it becomes a bear market from a bull market from the technical standpoint?
A few weeks of bear candles and a cross over of the two EMAs?
Thanks!
Hi Ben,
That’s a good question and I am actually preparing a post on how I detect when a trend may be ending.
That aside, i look at a few things.
1) Structure of the markets, higher highs and lows.
2) Whether price closes beyond the moving average
3) Break of trendline
Do check out the post this coming week, I believe it will explain better.
Rayner
hi rayner,
whats your opinion on wheat? at H4 theres a single big green bar…is it still in the downtrend or is the trend going to change?
thanks
Hi fadh,
Honestly i have no idea if the trend will change, i simply can’t predict.
Price could continue higher before trading lower, or continue higher without looking back. It sounds silly but that’s the truth.
And since that are the 2 possibilities, the only thing for certain is to have your stops in place to manage your risk.
Rayner
thanks rayner. hopefully this is a selling opportunity.
Hey fadh,
Don’t forget to place your stop loss 🙂
Rayner