Understanding Trend Direction

[ChrisBowling 2]

Hi BBT members,

I was wondering if there is a video somewhere on BBT explaining more in depth on Trend Direction?

What does Trend Direction mean?

It seems simple, but I don't have complete clarity on it. A lot of strategies involve trading "with the trend." I know that if we are in a bullish market and on the daily chart, we are trending above the 200 MA, the trend is up. But what if the stock is gapping down pre-market on new inflation numbers or some other news...is the trend up or down now? What if SPY is gapping up, QQQ is gapping down, the whole market is trending up, and the stock we are looking at is gapping up or down? If I am supposed to look for an opening range breakout in the trend direction, what is the trend direction? 

Also, in the market we have now, we have been in a down trend, but after interest rates were announced by the Fed, the market has been bullish last couple of days, but when I look on a daily chart, we still have not crossed the 200 MA, and we are still well off the highs. You might say over a longer time frame, we have been bearish, but over a shorter time frame, we have been bullish. How do I determine the trend direction in relation to an opening range breakout?

[ChrisBowling 2]

Thanks Peter! I searched too many words at once and got no search result! That is a good idea just typing in "trend".

[ChrisBowling 2]

I got my answer in the video "How to Trade Breakouts 1" from Aiman. Looking at the 60 minute and daily charts and looking for bullish/bearish patterns.