Forex Trend Trading

Are you trading with a TREND?

To be consistantly profitable in Forex, traders should be able to identify market trends.

Why do you need to know about trends in Forex? The answer is simple: when you know trend direction you can increase your chances to profit from a market move by opening a position in the direction of the trend. Counter trend traders can be often punished by the Forex market.

How to spot a trend? Any novice trader should be able to see simple slopes and hills on the chart created by the market price, a trained trader is able to see certain chart patterns. When the market moves it does so in a certain way, creating a pattern — a set of waves. The price makes peaks and valleys, or they are also called Tops and Bottoms.

Higher tops and higher bottoms will tell Forex trader that uptrend is in place. On the contrary, lower tops and lower bottoms suggest a downtrend. A good clean trend in a well trending market is one of the favorite trading environments for all Forex traders to trade in.


Sourcing:
http://www.forextrendline.com