MOST SUCCESSFUL TRADES OCCUR IN THE DIRECTION OF THE TRENDThe advantage of trading with the trend is that it is the  direction  tradedby large scale traders and the momentum caused by  new  money  entering  themarket is likely to continue moving prices in the  direction  of  the  trenduntil there is a good reason for it to turn around. The reason  could  be  afundamental event or  simply  profit  taking.  Below  are  several  ways  todetermine trend direction.
TREND REVERSALS        .
Chart 12 - Since the trend is the direction  of  the  next  longer  dominantcycle than the one you are trading, the beginning of  an  uptrend  is  oftenconfirmed by a buy signal in the next  longer  time  frame.  In  the  weeklychart at the two lows indicated by W, the direction of trend for  the  dailychart was confirmed when prices exceeded the high  of  the  weeks  with  themechanical signal dots.
      Another indicator of an uptrend is that the trading  cycle  highs  andlows in the daily chart are  above  the  previous  trading  cycle  tops  andbottoms. Following an uptrend, a drop below a previous trading cycle  bottomwill most often indicate the end of a trend and is likely to be followed  bya period of consolidation or a downtrend.