Trend Analysis Synopsis

Hi All,

I have finally grasped the concept of Trend Analysis *I think* haha... anyway, it is as follows:

First, ADX Filter rule: ADX MUST be higher than yesterday. If not, we don't take the trade.

Secondly, we identify the last 2 swing hi and last 2 swing lo.

Thirdly, we see which trend it is.

Definition of Bull: Higher Hi and Higher Lo
Definition of Bear: Lower Hi and Higher Lo
Definition of Neutral: The rest

If it is a Bull Market, we set an entry if it breaks the Higher Hi (whatever price + 3pips), we go into the market.

If it is a Bear Market, we set an entry if it breaks the Higher Lo (whatever price - 3pips), we go into the market.

*NOTE: We don't go into a trade, if it is a megaphone formation (Higher Hi and Lower Lo). BUT if it is a Pennant formation (Lower Hi and Higher Lo), we set up two entries to go into the market - One for breaking the Lower Hi & the other one for breaking the Higher Lo.

Lastly, we set the stop loss to be Last Swing Hi for SHORT or Last Swing Lo for LONG. We change the stop loss everytime there is a new Swing Hi (SHORT) or new Swing Lo (LONG). And of course, only Bishop Rule applies here.

That's all folks :)

Your Friend,
Max Tay