1. NORMAL EYE MONITORING

Technical analysis is not a science, and neither is trend identification. Don't try to complicate the definition and think it's effective, instead keep things as simple as possible.

The first way of determining that trend is to rely solely on pure price actions (no indicators). Shrink the current chart down and observe the price line slope. Strong and clear trends are often characterized by long impulse waves and short corrective waves.


It won't be difficult for you to spot a strong trend using this method.

2. DETERMINATION THROUGH THE PEACE

The next method is more specific, instead of observing the slope and the waves, you just need to look at the bottom peaks formed on the price chart. If:
  • The price of continuously making high highs-highs and low lows-higher is a sign that the market is trending up.
  • The price continuously creates low lows - lower lows and low highs - lower, which is a sign that the market is in a downtrend.

This is a way that many traders use and appreciate for its effectiveness and simplicity. However, there is one thing you need to do first that is to research and give yourself a clear definition of the bottom peaks as a basis for confirmation.

3. PRICE RESPONSE IN VALUE ZONE

In a technical analysis as well as trend identification, nothing is more important than price actions, and we have to observe how they (prices) react to important zones.

This is one way for us to check the “strength” of the previous trend. Specifically, if signs of a downtrend appear ahead, and current price action at key prices also supports that statement, the trend is likely to continue.


Like the example above, there is a sale ahead, look at the arrowed areas. When the price encounters key price zones it could not be overcome and has continuously moved down the previous downtrend, one evidence that the downtrend is quite solid.