But when I see an UPTREND or DOWNTREND that has already started how should I enter in the trend with least possible risk and maximum reward?
Risk and reward is the essence of money management. For a good money management you must manage your trades efficiently.
In this article I will show you how I manage my trades.
ENTERING AN UPTREND ON DAILY
When you see a reversal of downtrend in the daily chart and you are a swing trader and you want to capture the swing then it is better to zoom the chart to 4 hour or 1 hour to enter a trade. when you see a pull back then open the lower time frame and draw the trend line joining lower highs against the major trend. When the candle breaks this trend line and closes on the other side that is the time when you have to enter the trend and keep the stop below the swing low by a difference of 5 pips.
In the charts above you can very well see that there is a change in daily trend so I opened 1H chart and during a pullback joined the highs of the hourly chart and I got a falling trend line. Remember that the main trend is UP. When I see a candle closing above the trend line drawn on 1H …