How to known trend of a stock?

How to know trend of a stock before taking a trade on short time frame(1 and 5 min). Most of the time i take wrong trade on short term because of going counter trend.

convert the chart to line chart and see if its going up or down. Some people like me are blind to ups and downs and they use some EMA/ SMA as refernce. If price is above your reference then the trend is up and else its down.


Nicely explained in SHORTCUT.

first of all, the most important step in trading is the following steps:

  1. the type of trade you want to take , it means that you are investing for long term like 1 year or more,
    medium term 6 months to on year and
    short term like less than six months.
    and lastly intraday.
  2. in you question, you are talking about 1 min and 5 min time frame . it means you want to take intraday position.
    becase the smaller time frame are important from intraday point of view. if you time frame were to be 1 day , one week, then you are looking for short term, medium term and long term investing.
  3. say you want to take 1 min time frame and 5 min time frame, for intraday, then always look for the last three support and resistances of the trend, and for intraday, if the stock has fallen yesterday and it was its first day of falling then, there is 90% chances that it will fall on second day also. stocks dont fall for one day, if it is falling for the day 1, then on day 2, it has more chances of falling.
  4. the intraday trading depends on the breaking of support and resistances. the support and resistances here means the short term support and resistances and then will make a big fall or big move upwards. then there is money made in big moves.
  5. when doing intraday, though it is not advisable , but if you want to do, then look for the yesterdays candle and if it is red and the falling is day1, then today also it should fall provided that the todays support of major candles is broken.

When trading on 1min tf, support and resistance of 1min tf or higher tf is also important

see, trading from intraday point of view the following steps are important:

  1. timeframe of 1 day= important reason: before starting intraday trading, see the trend of the stock of yesterday from 1day time frame. if the stock has fallen yesterday and it is its first day, then today also it is likely that it will fall.
  2. timeframe of lesser than 1 day, like 1 hour important, 30 minutes important, 15 minutes important, 5 min important and 1 minute also important because, these time frame will tell you the signs of pattern reversal are going to happen or not.
  3. coming to your question, support and resistance of hourly and below that timeframe , all are important from intraday trading point of view.
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