Now that we understand how to identify the trend through the price action and, more precisely, with a series of successively higher tops and higher bottoms for an uptrend and a series of successively lower tops and lower bottoms for a downtrend let’s explore a second way, the oscillators.

This time, I have applied one of the most popular oscillators on the price chart of the S&P500.
In the blink of an eye, one can notice that MACD is moving into the positive area above the zero lines, signaling an upward direction.

Again, easy and fast.
Let’s move on to a more interesting example, that of the USDTRY.

Even though the direction of the market may not be that visible to a beginner, I am sure that you will agree with me the MACD started moving in the negative area below the zero lines, signaling a reversal to the downside.
This is the very early stage of a new trend.

I hope you find this useful.
Stay tuned for more.