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By identifying the main trend, you have completed half of the trading plan.

The main trend determines whether you’re buying or selling.

the main trend should always be decided using a time frame higher than the time frame you’re are trading from. So let’s say that you trade from the daily charts, move a time frame higher to the weekly, and there, you’ll find the main trend direction.

The image above shows a the trendline in blue. For a while, prices was trending downwards. Then, all of the sudden, price reverses and breaks through the trend line and the previous market structure (shown in red.)

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