Trend Trades Definitions
Definition of Trend
We defined UP trend as a series of rising troughs and rising peaks in higher time frames. To identify, UP trend, we first identify troughs, but to say it is UP trend, we need to see 'rising troughs and rising peaks'.
We defined DOWN trend as a series of falling peaks and falling troughs in higher time frames. To identify downtrend, we first look at peaks but to say it is downtrend, we need to see 'falling peaks & falling troughs'.
Definition of FLIP.
In uptrend resistance can change role as support & vice versa. This is what we call FLIP. After breaks, price will make a new high in uptrend (rising peaks) or a new low in down trend (falling troughs'. Once price start to retrace, we will wait for price action within +50 to -50 from FLIP Line. We want to see First Swing Point.
In higher time frames - we identify trend using trend definition. Next question, where the FLIP? In uptrend - the flip means at higher low & in DOWN trend the flip mean at lower high. And the Flip zone is within +50 & -50 from FLIP Line.
http://nakedtrading.blogspot.in/2011/04/trend-trades-definitions.html
