Identifying General Trend
By the general (primary, overall, dominant) trend we mean the price moves that can be projected with the use of the higher time frames.
Already during the determination of the day trend, the system automatically determines the general trend, since along with the analysis of the short-term (15-60 - minute) and intermediate-term (120-360 - minute) charts, the system is also analyzing the Daily, Weekly and Monthly time frames, which, in fact, form the general trend.
Determining the overall trend is perhaps the most important and challenging task. If the trader is able to determine the general trend, then the probability of losing the deposit is reduced by an order of magnitude. The difficulty of determining the general trend is the difficulty of identifying the turning point, which can be formed on the longer-term time frames for several weeks or months.
To identify the general trend, the trading system analyze the monthly chart; and to specify the general trend, the system scans the
narrower time frames (Weekly, Daily) for the presence of an opposite trend signal on one of them. The price moves within the general trend may last from a pair of weeks to a pair of months.
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