Tuesday 6 November 2018

Reviewing the trend is our best friend in the Forex trading

Looking at the graphs and the trend of price movements in the past gives you a very good overview to predict the price move in future.
Although it looks pretty trivial, it does help you get profitably.

Once you understand the price trends, you can identify the best time to buy the currency pair.
It is best to follow the trend. Typically, moving upwards will give you more buying chances and downward more selling chances.

But, how to identify the type of price movement? What are its characteristics?

The most convenient way of figuring this out is by looking at the charts. This way you can see the up or down movement.

Detect type of movement in Forex.
The price movements in the chart form the peak and concave points that are easily recognizable.
In an upward trend, the movement of prices forms higher peaks and higher valleys.
A graph values thousands of words. Let's take a look at the chart below:

This chart shows a downward trend, and this chart suggests that the trader should sell.


It is important to note that it is difficult to detect the type of movement on some days, there is not much change in prices for some days.
And sometimes price changes outline a price range that creates very uncertain conditions. The following figure shows an example of this state.

The forecast is much simpler when you can see a trend that when the price is in a range. You must take caution.

The unpredictable movement in this case is the reason that many traders avoid trading in the range and wait for the renewing signal of the uptrend or downtrend.

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