Trading With Forex Trends
Know the concept of a trend like a simple article here (link to trend concept article), actually we can already trading forex. Specifies entry level, stop loss level and target level. It’s as simple as that is not it? But is not it Simple fairly expensive .. ups it the name of the restaurant yes.
Ok, this article will explain briefly how we trade with the trend.
The cycle of a trend can not be ascertained with certainty. Trends can take place in a matter of weeks or even daily can be monthly. A safe way is to wait for the beginning of the trend, then enter and trade following the trend. If the trend is strong enough, the movement can last up to a week. However, if the trend is not strong it may only last 1-2 days before turning directions. What you should be aware of the emergence of signs of reversal. One of them is by observing the emergence of chart patterns (candlestick).
The most profitable time or time to transact to trend is of course at the beginning of the trend. While at the end of a trend rada less profitable and at risk of reversal (reversal).
When there are signs of reversal (at the end of the trend), we suggest you get out of the market to wait for a new trend to emerge. Some moments there is a strategy of transaction that is against the trend (reversal strategy), but such a method has a big risk and is never recommended for beginner traders.
The movement of trends in each currency may vary over a period of time. Long-term trends are usually seen on weekly and monthly charts. It could be that daily movement trends that occur are different from weekly trends or long-term trends. For example the monthly trend indicates bearish (down) but daily trend is bullish (up). If this happens usually the trend in the shorter term is not the real trend, but it is a correction of the long-term trend and can be reversed at any time.
Conversely, if the daily trend corresponds to the weekly trend, it is usually quite a strong and safe trend to follow. To find out, we can see graphs on various timeframes (TF).