How to Confirm a Trend Change. Method to identify momentum change


Condition 1
From down trend to Uptrend, At least one higher Low is essential for trend change. And followed by Higher High will confirm the trend change

Condition 2
From down trend to Uptrend, Last Lower high in downtrend should break to confirm the trend change.(In the above picture, LH  Just before the Last LL )

 Condition 3
1 2 3 PATTERN OR SWING LOW PATTERN CAN BE USED TO IDENTIFY MOMENTUM CHANGE

Condition 4
Use trendline Break with above rule together for true result



By checking and ensuring the above condition whether the conditions are met or not met will help you to identify the trend change.

we ca not get to the conclusion with only one condition above. for example, we can not say that trend has changed if the trendline is breaked




Comments

Post a Comment

Popular posts from this blog

Trading Journal on 12 June 2017. BPCL, Coal India

Image
BPCL In the above chart BPCL was in downtrend for the past 2 to 3 days. But the stock is in sideways in last 2 days. Here 710 act as Resistance and 696 Act as Support. The stock is trading between it's resistance and support area after a down move. It may be just a consolidation. If the Stock Break the Resistance (710) and stay above it, The trend be considered and changed from down to up. (Buy can be initiated). If it break resistance, 723 area is next resistance level. If it break the Support, the stock will continue it's downtrend. (Sell can be initiated) Coal India Coal India was in clear down move in first 2 days. After that, The stock was in consolidation downtrend. Stock still going to down move after breaking the first trendline but The slope of the trendline is lowering. Both trendline is in downsilde but 2nd trendline slope is lower than first. Which means the stock down move is weakening and downtrend is coming to end. Stock downtrend is weake...
Read more

Distinguish Retracement and Doubletop. trend or momentum is changing or not

Image
In an Uptrend (or Downtrend), retracement will be happened. But At    a point there may be double top indicating the trend change.here are some feature of both to identify the pull back which is a retracement or it is for trend change(Doubletop) Double top only happened on the top of a move. Ie. it happened only after a clear move to up or down. And the point of doubletop will be long in distance for a sideways move or volatility. While the retracement happened in every up move that may happened just above(below) the sideways channel In double top, last resistance will not be broken in up move In retracement, every resistance will be broken in up move In double top, last support may be broken in pull back just for a while indicating trend change In retracement, last support will not be broken indicating healthy trend Double To Usually leads to trend Reversal or Change in Momentum while retracement may not lead to trend reversal In Retracement, Price m...
Read more