One of the most effective uses of a trend is to enter a small position when a trend has developed or is developing. When other signals present them selves add onto the trade until there is an exit signal.
There are a couple of ways this can be done; One way is to spot the makings of a trend on a larger time frame then move to a smaller time frame and time the entry. Whenever another signal presents its self add another position.
In the 4-hour chart it can be seen that there was a candle that closed lower than the previous candle. This is heads up that there is something changing in the market. By looking at the 15-minute chart there were signs of a trade but not great signals when the time the 4-hour started to show something. By being patient and watching the indicators on the 15-minute the trade could be timed with a great entry and good add on signals.
4-hour 15-minute 15-minute add on
Two when an entry signal presents it’s self on a smaller time frame enter a position and when another signal develops on the next larger time frame enter another position. Repeat this on each larger time frame until there is an exit signal and the trade is coming to a close.
15-minute chart first signal 30-minute chart second signal 1-hour chart third signal
By starting out with a small number of lots if the trade doesn’t work out only a small amount would be lost. Once all the time frames start to line up there will be a larger low risk trade in the works. This technique works out great when there is a break out because the smaller time frames will show the breakout first than work up to the larger time frames.