Determining The Birth Of A Trend
How To Determine The Birth Of A Trend Using Order Flow Momentum
Order Flow Momentum tends to give hard clues as to the end of a trend - almost always before Price give clues.
This stays true because changes in Price are always a function of changes in Order Flow.
In the beginning of a Trend, one side of Order Flow Momentum (either the Buy Programs in an uptrend or the Sell Programs in a downtrend) will dominate. At the end of a trend, Order Flow Momentum tends to wane.
After a downtrend and at the beginning of an uptrend, you will quite frequently see a large swath of Green background in and around the bottom of the trend. If the swath of green is wider than the previous red swaths, this will signify a new leg up.
The same works at the end of an uptrend except that the colors are reversed.
Hope this helps.