Trend Subjectivity

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As you can see in the above chart the SL1 broke the Uptrend definition not 1st time but also 2nd time on SL2. Does this mean that uptrend is finished ? No because In the above chart the arrow points a S/R line which became Support for SL1 and SL2 which means buyers are joining which continued the uptrend till our higher time frame resistance.

TIP

• Essentially,

• If it looks like an uptrend (price appears to be moving from the lower left to the upper right)

  it is an uptrend.

• If it looks like a downtrend (price appears to be moving from the upper left to the lower right)

  it is a downtrend.
• Anything else is a sideways trend.
• All other rules are secondary to this.
• Through practice you will become comfortable with a subjective assessment of trend direction, and also a subjective assessment of which swing highs and lows you consider significant.
• Will discus (coming shortly) on assessing the strength or weakness of the trend will assist greatly in your ability to subjectively assess the trend direction at the points of objective trend break.
• Don’t make this more complex than it needs to be.
• A trend is a general tendency for price movement in one direction.
• Your mind is much more capable of identifying this trend, than any objective definition.
• And if you get it wrong – price behavior will very quickly alert you to this fact.

This concludes the Trend Saga. In next article will finally look into the last time-frame which is Lower time-frame i.e. LLT– Strength & Weakness.