In forex trend trading, traders seem to employ the strategy of taking advantage of long term moves being played out in the markets. The trending system aims to work on the market trending behavior and enjoy both the bull and bear conditions. Traders who normally persist with this strategy uses market price calculation, moving averages, trend lines to see the general direction of the market.
So what is a trend?
Most common definition for a trend is where the market creates a higher low for uptrend or lower high for downtrend. The market movement is not pretty, not expecting the price just to go up most of the time. There are times when the market must rest for awhile before heading up further in the intended direction and at times may even break the higher low or lower high. Actually that makes sense the truth that market will always correct itself and retraces back time to time exactly like the ebb and flow of the waves.
A Forex trend is simply a tendency for market prices to more a certain direction for a period of time. These trends can be long-term, short term, upward, downward, even sideways. When you invest in the Currency forex market, your ability to identify trends will dictate your success.
Forex Trend Wave themselves more in a Elliot wave, which is five steps. Another waves follows this with three parts, the ABC correction. This is called an Elliot Wave, and is the 1st stage in the trend. Most will check with the pivots, searching for seven to eleven advancing pivots. Be sure to note the count as the price climbs.
For the uninitiated, an Elliot wave is a market theory that the market itself moves in waves. If one is able to identify a wave, they stand to generate great gains. Waves will always be caused by factors not immediately obvious. removed prematurely. Only the market knows where these are and, in some circumstances, will head for them.
A method of identifying Forex Trend Wave is to study the moving averages. Using a mathematical approach in analyzing the market past data, it provides a more objective perspective on the market. The commonest form of MA used is the simple moving average with other types of MA like exponential moving average used also.
The key point is that these MA helps the trader to see where the market believe the value lies with the fundamental understanding that if price trade above a certain average value the market is in an uptrend. There are many variations in the use of MA and many common ones are having a few different periods of MA to see the turning point from the market as a sign the present trend is ending and a new one is looming.
Having these two basic tools for forex trend trading is just a starting guide to assist you within your trend trading. Having to master these two tools together with a mix of other trend indicators will let you develop a specific edge over other traders since you get better and better.
So what is a trend?
Most common definition for a trend is where the market creates a higher low for uptrend or lower high for downtrend. The market movement is not pretty, not expecting the price just to go up most of the time. There are times when the market must rest for awhile before heading up further in the intended direction and at times may even break the higher low or lower high. Actually that makes sense the truth that market will always correct itself and retraces back time to time exactly like the ebb and flow of the waves.
A Forex trend is simply a tendency for market prices to more a certain direction for a period of time. These trends can be long-term, short term, upward, downward, even sideways. When you invest in the Currency forex market, your ability to identify trends will dictate your success.
Forex Trend Wave themselves more in a Elliot wave, which is five steps. Another waves follows this with three parts, the ABC correction. This is called an Elliot Wave, and is the 1st stage in the trend. Most will check with the pivots, searching for seven to eleven advancing pivots. Be sure to note the count as the price climbs.
For the uninitiated, an Elliot wave is a market theory that the market itself moves in waves. If one is able to identify a wave, they stand to generate great gains. Waves will always be caused by factors not immediately obvious. removed prematurely. Only the market knows where these are and, in some circumstances, will head for them.
A method of identifying Forex Trend Wave is to study the moving averages. Using a mathematical approach in analyzing the market past data, it provides a more objective perspective on the market. The commonest form of MA used is the simple moving average with other types of MA like exponential moving average used also.
The key point is that these MA helps the trader to see where the market believe the value lies with the fundamental understanding that if price trade above a certain average value the market is in an uptrend. There are many variations in the use of MA and many common ones are having a few different periods of MA to see the turning point from the market as a sign the present trend is ending and a new one is looming.
Having these two basic tools for forex trend trading is just a starting guide to assist you within your trend trading. Having to master these two tools together with a mix of other trend indicators will let you develop a specific edge over other traders since you get better and better.