How far back should you go to determine a trend on a daily chart?
I have attached a chart for use as an example. Sometimes I don't know if I should ignore what happened 1 month ago (in terms of trend) and stick with what is current. For example, the attached chart is currently in a downtrend. However, it is nearing a long-term trend line. Is it now going to be in an uptrend? How do you determine direction for trading?
thanks.
I have attached a chart for use as an example. Sometimes I don't know if I should ignore what happened 1 month ago (in terms of trend) and stick with what is current. For example, the attached chart is currently in a downtrend. However, it is nearing a long-term trend line. Is it now going to be in an uptrend? How do you determine direction for trading?
thanks.
Attached Image