How To Read Forex Trading Trends Quickly And Accurately. Hello friend trader, admin what is forex sure you must be familiar with the phrase “trend is our friend” right? Successful traders always make trends as part of their trading because they believe that by following the direction of the trend, profits will be easier to achieve. Agree? Hmmm, I personally feel that the statement of the champion trader is indeed true.
The market can move so fast because there are massive transactions conducted by large traders (institutions or institutions in general). Small traders like us can only “go with the flow” for existing prices, so it’s obligatory to understand trends. Speaking of trends, on this occasion what is forex will discuss how to carefully read trends for only 30 seconds. Curious? Here are the tips for you.
How To Know The Trend Will Be Up Or Down
Quoted from the website idrfore.com, there are many tools that can help traders to know the movement of trends, for example using trendline, wave indicators, etc. But what will be reviewed this time is knowing the direction of the trend using the trendline and the MA. This method is very easy, check it.
With How To Trendline
MetaTrader 4 (MT4) provides trendline features with the aim of making it easier for traders to identify trends. For more details, we can see the trendline display in the image below.
How To Use It? Easy
we only need 2 waves, the trendline is actually used if there are already 2 waves. How to know DOWNTREND is when there are 2 waves (high and lower high) More details are in the picture below.
Meanwhile, to find out the trend is up, aka UPTREND, i.e. with 2 waves (low, higher low) as shown below.
The trendline is placed at the end of the two waves. After only 1 minute, you can analyze the trend.
How To Moving Average
Don’t feel yourself a trader if you are still blank about the MA alias moving average. MA is a favorite of many traders because, in addition to being easy to use, it can also show the direction of the ongoing trend. How it works is to calculate the average movement in a certain period of time. The settings can be set as desired, but in this explanation, what is forex using 2 MA at a different time.
MA 1: “period 50” marked blue
MA 2: “30” marked red
DOWNTREND marked with MA 20 is below MA 50, Moving average is leaning down
UPTREND marked with MA 20 there above mA 50, the Moving Average skewing to the top
2 tools just help. But it does not guarantee you will be reliable in reading trends. Practice with frequent chart viewing still needed. If you are already proficient, you don’t need the help of tools to see price trends, because usually a skilled trader can predict themselves. But yes, just multiply the experience first, until you really get used to it.
Trading Against Trend
There are traders who like to counter-trend alias trading against the direction. There is nothing wrong with that, but what is forex believes this way should be done for those who are professionals. They have a directed trading system and are focused on certain circumstances, like sideways, for example. Trading against the trend is suitable for anyone who wants to have a quick profit but remember that the risk is huge. Like humans who just enter a new environment, usually tend to “obey the rules” and then change to “disobeying the rules” after knowing the situations and conditions in the environment.
Hopefully what forex article is: how to carefully read trends for just 30 seconds can be useful for you. Before trading on a real account, use a demo account as your best way to practice. Want to test a trading strategy but haven’t had the chance to register a demo account? You can register by clicking the image below. Besides FREE, there is also a free education class, you can ask questions with the educator team too. Let’s register now.