If you ask an experienced trader how he plans his trading session, the answer will be: "I open my charts and the first thing I want to know is Where the trend is going".
That's right, the examination of the market trends is what every analyst do daily.
How to spot a trend?
There are many simple ways to spot a trend:
1) Visual, where you zoom out the charts till you can see price direction clearly.
Zoom in — and the market noise is back...
2) By using indicators. Forex example, 200 SMA. If the market is trading above 200 SMA — that's a bullish market, everything below 200 SMA indicates bearish trend.
3) By using other trend following indicators.
4) Or by drawing trend lines! Simpy connet lower lows on your chart till you have a good visible trend line. Then do the same for higher highs.
What you'll get will be either a channel Up or a channel Down. Now it's easy to tell which direction the price is heading.
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