Follow market trends by watching the medium- to long-term envelope to probe and continue probing the market direction
Where market equilibrium collapses
Breakback after trend-following breakout
Range breakout
Trend wedge-type breakout
Range breakout
Explosive trend following
All of this occurs on the 30-minute chart
Although it may seem that counter-trend would win
market sentiment is always changing over time
It only seems like anti-trend could win after watching later market movements
In reality you must be aiming for a trend to enter
The market moves in the long term, but this is not reflected in candlestick charts
Discrepancies tend to arise on long-timeframe charts
In reality, you enter by looking at short-term charts from a long-term perspective
Counter-trend is just counter-trending
You should include trend-following and order-flow analysis
Counter-trend looks like a market where just counter-trending and averaging down succeeded
It only appears that counter-trend rebounds work in hindsight markets and seems like you can win
In reality it is safest to enter at the point of a rebound with the trend-following move
Otherwise you will keep getting misled and won’t know what to base your entry on
Although based on a long-term market
Short-term charts show movements that are reflected in the long-term market
Long-term market trends have no influence at all
They only appear in the short term
Stop loss
Momentum-following tends to go against you
Counter-trend moves more toward profit direction; when it goes against you, losses increase
In any case it’s just trending anyway
If you trend-follow, you will almost certainly increase the number of losses
Unless you do stop-loss trading in trend-following, you cannot grow your account
Trends only require the breakout width
Nothing else is necessary
If the trend continues
It just means you would break the long-term timeframe
There is only a concept of a fixed take-profit level as a result
Because in short- to mid-term trend entries it is easy to enter incorrectly
Even without envelopes at extreme highs and lows
You can enter a trend on a short-term basis
Manual stop loss
Ninety percent: short- to mid-term perspective
Stop loss
In the end, from a long-term perspective
Trend confirmation on a 30-minute and 1-hour chart
If you trade with the same automated trading logic, you won’t grow
Automated trading assumes the market’s shape is absolute and the market direction logic is absolute
In reality it operates on a reversion theory
It operates on a reversion theory and prospect theory
Therefore market observation becomes powerful
Envelope or MA touch, followed by the breakout
Only this
Beyond that, the envelope’s short-term line can enter in a similar way to the subsequent breakout
Market patterns and envelopes form a relationship
In range, bounce off the inner band of the envelope
In trends, bounce off the outer band of the envelope
Bounce off the outer band in a trend, and on the short-term you are already at an MA touch state
Moreover, MA touches are comparable to trend reversals,
From a trend perspective, trades work when trading on the outer envelope band
Also, the width of that band is unclear, which is the proper spatial relationship
An MA deviation simply shows the market pattern
Envelope is basically for trend-following and should be entered with a trend view
Not something to treat as trend-following vs counter-trend
It is something to be handled within a trend
Handled according to market pattern
Envelope is basically just two bands close to the MA, and one farther band
To maintain a trend perspective, it is enough to use the envelope with just the closer band
Primarily only two envelopes are relevant; everything else is outside the scope
The market simply trades according to the market, so basically only one envelope is needed
The farther band is merely a tool showing take-profit levels, not an entry tool
As an entry tool, you only need the nearby band width
If you want to indicate a trend, you can color the even closer band width
There is not much difference between MA touch and envelope touch
If a trend appears, it is more correct timing to enter right away
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