why paying attention to trendline is important with moving averages diredtion , is algo or program trades will come many times with break of trendline

program trades have different price pattern on chart, this trades will bring in sudden price move sometimes 20-30 pips in 1 minute candle and then all  following 1 minutes candles are going to be in that direction only without any pull back candles in between, this is typical of program trades, sometimes this trades are run on news, and you will see very classic price pattern of it

when such price pattern appears, you can expect some price pull backs as program trades exits also fast as it comes, and then prices moves again in the direction of the trend

program trades are executed mostly in direction of the trend, so you can expect this moves set by program trades to continue if you know the direction of trend.


on friday there was very classic price movement of program trade on gold , even though you do not know the numbers of orders placed , by price action you cand make out that this were program trades run under 1 minutes timeframe.

this algo moves is what kills scalpers quickly,

 and it shows the need to be in direction of ther trend of moving averages and watch out for higher timeframe trendlines always.

running program trades and moving prices this fast needs lots of money to place big orders back to back so this are more of speculative positions, and this are taken by big players, and comes during periods of time when there is good liquidity available mostly when interbank platform are open, as this big orders need to get good fill prices . this program trades which are speculative  part is what adds more power to ongoing trend nowadays.

so they are run when europen markets are trading in full swing or when us markets are open with that and news flashes. or sometimes without news if technical setup is right in direction of moving averages, with break of trendline.

if markets are trending, then most of the times asian session is countertrend pull back, and again trending moves comes back at london session or in us session.

it is more easy to run program trades when prices are already moving in downtrend , so you will see more flash crashes in downtrend run by program trades, as fear grips a trader quickly due to fear of loss.