Hi all,
The Master, Charles Dow and his learned disciples always said; the trend is your friend until it ends.
Each of us have our own approach to the FX Markets. From the small experience which i have gained by trading FX over the years, i have learned one important thing....the FX market is the most trendy market you can ever find. While the methods and approaches have changed as markets becomes more sophistacated, one thing has remained constant, TRENDS. Many of us has disputed on how we identify trends and approached them, while the Dow Theory has implied a very simple manner to approach trends, we just could not completely rely on it due to one huge factor....VOLUME.
There are a few questions which i would like to ask to dow theory practitioners,
1. Without the presence of volume, how do we identify a valid swing of trend or infact the trend itself? Do we just discount volume for that fact? If so, on to the next qn.
2. As the theory mentioned, an uptrend is a series of movements where price records a higher high and higher low....So we have already identified our primary trend, on an correction (secondary reaction), how and where do we find the likelyhood of a high probability entry to mark the continuation of the primary trend?
I would like to discuss this theory further but for a start, lets discuss this two questions first and as we move forward, we'll likely dig deeper into the theorems of the theory.
Please share your views.
regards,
Jest
The Master, Charles Dow and his learned disciples always said; the trend is your friend until it ends.
Each of us have our own approach to the FX Markets. From the small experience which i have gained by trading FX over the years, i have learned one important thing....the FX market is the most trendy market you can ever find. While the methods and approaches have changed as markets becomes more sophistacated, one thing has remained constant, TRENDS. Many of us has disputed on how we identify trends and approached them, while the Dow Theory has implied a very simple manner to approach trends, we just could not completely rely on it due to one huge factor....VOLUME.
There are a few questions which i would like to ask to dow theory practitioners,
1. Without the presence of volume, how do we identify a valid swing of trend or infact the trend itself? Do we just discount volume for that fact? If so, on to the next qn.
2. As the theory mentioned, an uptrend is a series of movements where price records a higher high and higher low....So we have already identified our primary trend, on an correction (secondary reaction), how and where do we find the likelyhood of a high probability entry to mark the continuation of the primary trend?
I would like to discuss this theory further but for a start, lets discuss this two questions first and as we move forward, we'll likely dig deeper into the theorems of the theory.
Please share your views.
regards,
Jest