It is proven that traders only have a 30% chance of making money when trading against the trend. When the trend is up, we only look for setups and triggers to go long and when the trend is down we only look for setups and triggers to go short
USING TREND LINES TO IDENTIFY THE TREND
The trend is always determined using the larger time frame. Trend lines are used to identify the future trend of the market as well as offer potential levels of support and resistance.
• Price moves in trends.
• Trends move in waves.
• The impulse wave moves in the direction of the trend.
• Followed by countertrend moves termed as Correction