Sunday

Lessons from the live room: defining a trend using agreement

With the recent large trend days in the AUD, I thought I’d share how we were monitoring trends in the live trading room
to determine if the trend was still progressing, or indeed, coming to an end.

You’ll notice below how agreement is trending to the downside from one fifty-minute period to the next, which provided a view of what the group of players that move that market was doing so we could tag along.


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 While it's straightforward to identify when a trend is continuing (as per the chart above), how can you identify when a trend is likely to end?
Below is a chart from Friday morning during the Asian trading session.
In the live trading room, we wanted to know if the price would continue to trend downwards after the retracement?
As shown in the second chart, notice the clear distinction between the trend in agreement versus the movement in price. This distinction alone kept us out of additional short positions while moving our focus to the upside.


Click on the image to enlarge