In this thread I will outline a way of quantifying a currency pair's current trend. Knowing the current trend is one of the most fundamental facets of trading, and yet I have found that this seemingly simple task can be devilishly deceptive.
People really like to spew aphorisms like The trend is your friend but they appear to assume that the trend is obvious. But when you ask around you receive many responses. Which trend are we talking about? The long-term trend? Mid-term? Short-term? And what defines long/mid/short term anyhow? If I'm taking a look at a daily chart, which most would say encompasses much of the long-term trend, the number of bars comprise the current trend? The previous 10 pubs? The previous 30? The previous 365? My point here is that simply defining the current trend encompasses a lot of room for debate, even amongst seasoned traders.
I've recently develop a procedure to measure trends that suits my style. I think of the method on my own, but I'm not claiming it is new. Perhaps it's been out there for several years - I don't understand. I just know I haven't personally seen it spelled out in the way that I'm about to spell it out.