How to enter any trend ?

In Trading , its often said that Trend is a Friend , in other words , you should follow the trend.

So , I have a question in mind ,
When exactly to follow the trend  ?


A trend usually starts after the completion of previous trend , or we can say when the
previous trend finishes.

According to my experience , its hard at the beginning to determine the exact starting point
of the trend.
Its not a big deal , we can follow the trend after the trend really starts.


These are the two important points need to kept in mind

1.) Previous Context :  Generally, by looking at the previous context we can determine the
                                       future price behavior like if the trend is strong (up , down) , very often
                                       there is a continuation of trend and if its a trading range the there is
                                       a 50% probability of trend following upward or downward direction.


2.) Pullbacks :  Like , we have already discussed in the previous blog, that pullback is the
                          continuation of previous trend.. so these pullbacks are the entry points in any trend.



Like in the chart below,

Black arrow is shown a initial point of a trend , but from the chart is not pretty clear
that how trend started from this point but if you look at the right context,this trend is pretty strong.
So , I have put these orange arrows which shows pullbacks , generally pullbacks contains 2 or 3
or may be more sometimes , weak candles . after that . continuation of trend is observed.
So, these are the points where you can enter the trend.


Notable Point  :  Closer the pullback is to the trend initial, more is the reward and lesser is the
                             risk . you can clearly see in the chart.


In the next blog , I will show some more theories related to Risk / Reward Ratio :


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