minor trend.
How to well trade with those information
1) For example, down prevailing trend and a minor uptrend. The strategy would be--- sell when the 5 minute chart's current price is below the 60 period moving average and moving line is sloping downward. It is because the prevailing trend is reasserting itself and it is likely to be down for the next move. Besides, look for other clues. Enter the market when the minor trend had slowed down and the chart's flowing is likely very close to the 5 minute moving average line.
2) Let's have a down prevailing trend and a confirm 5 minute downtrend chart. Strategy would be --- Enter the market after the current price moving line goes minor uptrend and then reverse. It is because the move is not yet 'stable'. Withdraw when there is a reaction if you trade with tight stops. If a market is trades through today's low or in a downtrend for the past three days, the market is likely to be downtrend and there will have a reversal soon.
3) Another example, an assuming prevailing trend down, a downtrend 5 minute chart, and just above days' lows. The strategy would be ---Trade with a tight stop when the current price is below the days' lows. The chance and the risk are limited depending on the technical condition that the traders have. In this strategy, the idea behind this is those traders are not waiting for a long break of today's or yesterday's lows to enter the market as they are think they might not have a clearly break.
4) The safest place to enter a market is -- buy after a sustained significant decline and likely to change to an uptrend. Look also for a long decline level. By the level third or forth higher bottom, it is clear that an up-move is coming.
5) The reverse is true in major uptrend.
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