When do trends begin? Discover answers from pro traders!
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.
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One method seasoned traders often use to predict trend beginnings is analyzing the correlation between the strength of bulls and bears.
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So imagine in a downtrend, how can you identify the signs of a potential uptrend?
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> 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?
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- 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?”
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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.