As wise men always say , Trend is your freind.
Those who have burnt their hands in trading , they clearly know why its always right to be on the side of the trend of stock. Once you bring EGO in picture and hold on to trades which are against markets trend, you ultimately end up blowing up your account.
What if there is some tool that helps you identify the trend of stock correctly. What if you can see the trend of stocks in different time frame and learn how to use it effectively to trade stocks in direction of trend?
Trend scanner is a tool that will help you trade stock in the direction of the Trend . It also indicates the strength of the current trend.Lets see how can we use it
Once you open Trend scanner , you can immediately see multiple columns like 5 minute trend , 15 minute trend , 1 day trend , ADX , RSI , VWAP , 20EMA , Supertrend etc. By default 15 min time framne is selected but you can change by clicking the timeframe button
The columns use a our custom algorithm to give you trend for the stock in the corresponding timeframe. When you want to do scalping trading , prefer it to do in the direction of 5 minute trend. When you want to hold stocks for 1 to 2 days , you can prefer using 15 minute trend.
The Value of column ADX indicates strength of Trend. ADX value of 30 and above and increasing will indicate that the stock is in strong Trend (if bullish the uptrend is strong and if 15 min trend is bearish then it means downtrend is strong)
Now lets try to understand how to interpret 5min , 15 min and daily timeframe trend and how to use it along with Average directional Index , Relative strength Index , 20 Exponential moving average and Volume weighted average price (VWAP)