4 Tips To Increase Profitability

I was reading an FXstreet session transcript and wanted to post the information contained about determining trends mainly because it is similar to how I gauge what the trend is.   This method applies to trading shorter time frames since it only takes into account the previous two days.  What data do you need to determine the current trend?

1. Pivot Point
2. LOPS1 or the low of the previous session
3. HOPS1 or the high of the previous session
4. LOPS2 or the low of the session before the previous session
5. HOPS2 or the high of the session before the previous session

I define a session as one day.  Here are the trend criteria:

Possible Uptrend with range-bound bias

• Price above pivot point
• Price below HOPS1 and HOPS2

Possible Downtrend with range-bound bias

• Price below pivot point
• Price above LOPS1 and LOPS2 

Strong Uptrend

• Price above pivot point
• Price above HOPS1 but below HOPS2

Strong Downtrend

• Price below pivot point
• Price below LOPS1 but above LOPS2

Very Strong Uptrend

• Price above pivot point
• Price above both HOPS1 and HOPS2

Very Strong Downtrend

• Price below pivot point
• Price below both LOPS1 and LOPS2

The 4 Tips To Increase Profitability are:

1. Effectively Determine the Trend
2. Use Indicator Signals
3. Use Price Behavior
4. Consistency is the Key

http://transcripts.fxstreet.com/2007/01/4_tips_to_incre.html

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