Spotting the start of a trend is a common challenge for traders. There's no universal formula, but pro traders have strategies to enhance their chances of spotting trend formations.

 

One method seasoned traders often use to predict trend beginnings is analyzing the correlation between the strength of bulls and bears.

 

So imagine in a downtrend, how can you identify the signs of a potential uptrend?

 

> Condition 1: By analyzing volume, you can identify when bearish momentum is fading and bullish strength begins to surpass bearish pressure.

> Condition 2: When sellers are distributing prices and the successive lower lows show decreasing price differentials, it suggests a potential weakening of the downtrend.

> Condition 3: Subsequently, buyers trigger a surge in both price and volume, resulting in a decisive breakout above resistance (trendline).

> Condition 4: The emergence of higher highs and higher lows indicates the formation of a new trend.

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What are our solutions for detecting these conditions?

 

  • W-Wave Volume Pro: This indicator captures total buy and sell volume, enabling you to effectively identify Conditions 1 and 3.
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  • Divergence Engine$ and Superior RSI: These indicators identify divergences, providing critical confirmation for Condition 2.
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  • Trendline Autom@ton: This indicator helps you identify Condition 3 by detecting price breakouts that exceed trendline resistance.
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  • Z-Trend Plus or Zigzag Swing Pro: This indicator highlights bullish and bearish structures, assisting in the confirmation of Condition 4.
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All of them are currently available at 40% OFF for the next 7 days.

You can use them to recognize the beginnings of trends and also to explore another question: “When might trends come to an end?”

 

P.S. If you’re interested in any of our recommended products, please let us know! We’re here to help you optimize their use.