The trend is a futures traders friend, you just have to know how to read it. Charting is an invaluable tool that helps traders identify trends. Trends tell you which way the market is headed: up, down or sideways.
Uptrend. An uptrending market is one that is steadily growing. There may be down ticks, but the general trend is upward. To identify an uptrending market, look for higher highs and higher lows. As the market runs up, each high should generally be higher than the previously set high. When the market pulls back, each low should be a bit higher than the previously noted low. When this occurs, we say the market is uptrending. Trading volume usually increases in an uptrending market. Use tight stop losses to protect your profits.
