Identifying Trend on a Chart

How can traders detect an emerging trend on a chart? According to Paul Bratby of Trade the Fifth, trends first arise when price breaks out of a range with increased volume. Next, confirmation of a trend can be discovered by rejection of a pullback in the opposite direction accompanied by lower relative volume.

In the following 3-minute video clip from his webinar Discover a Core Trading Strategy, Paul demonstrates how a bullish trend can be identified as it occurs. He also points out how pullbacks during an uptrend can indicate profit taking – and potential opportunities to enter the market where institutional traders do.

If you enjoyed this clip, be sure to watch our other webinars How to Use Volume Profile & Volume as a Leading Indicator.