How to Find the Trend in Trading
Finding the trend is one of the most important skills for any trader because trading with the trend increases your chances of success. A trend shows the general direction in which the price is moving over time.
✅ Step-by-Step Guide to Finding Trend
🔹 1. Use Price Action
-
Look at the highs and lows on the chart.
-
Uptrend: Higher highs and higher lows
-
Downtrend: Lower highs and lower lows
-
Sideways/Range: Price moves horizontally with no clear highs or lows
🔹 2. Use Moving Averages (MA)
-
Add a 50-period and 200-period moving average on your chart.
-
If price is above both MAs and the 50 MA is above 200 MA → Uptrend
-
If price is below both MAs and the 50 MA is below 200 MA → Downtrend
🔹 3. Use Trendlines
-
Draw a line connecting at least two higher lows for uptrend.
-
Draw a line connecting two lower highs for downtrend.
🔹 4. Check Higher Timeframes
-
Always confirm trend on higher timeframe charts (like 1H, 4H, Daily) for stronger trend signals.