What’s a Forex Trend and How to Identify It

Поделись
тренд-на-рынке-ФорексForex trend is a major price movement with pronounced direction and, in most cases, with long duration. A Forex trend exists until there is a clear signal that it has turned around and went in the opposite direction. Reasons for trend reversal, as a rule, result from events of financial, political or economic nature, occurring daily throughout the world, and are highlighted by the media. Types of FOREX trends 1. Ascending (bullish) trend is a focused upward movement in price. As the market moves in waves, in a bullish trend, every next peak (hi) of an ascending (momentum) wave is higher than the previous peak, and every deepest point (low) of a downward (correction) wave is higher than the previous low. восходящий-тренд-форекс-1 On a chart, a trend’s movement is represented by a trend line. Thus, the line of a bullish trend is a straight line (in some cases it’s a trend channel) drawn from left to right through two or more Low points of a correction wave. The bullish trend’s line is placed below the price chart and serves as a support line. How to determine whether the bullish trend is likely ending:
  • The quote breaks the trend (support) line and gains a foothold under it;
  • The last Hi on the momentum wave is below or at the level of the previous Hi.
How to earn from an ascending trend? One of the basic rules of trading a trend is to trade in the direction of the trend. If the trend is ascending, the trader should only open buy trades. The trade should only be opened at the Low of a correction wave. A Stop Loss order is placed beyond the previous point of the correction wave.

Descending trend

2. Descending (bearish) trend is a directed downward movement of the quote As the market moves in waves, in a bearish trend, every next peak (Hi) of the downward momentum wave is below the peak if the previous downward momentum wave. This way, the line of the bearish (downward) trend is a straight, downward-sloping line drawn from left to right across two or more correction wave peaks (His) and placed above the price chart and serves as a resistance line. нисходящий-тренд-форекс-2 How to determine whether a bearish trend is likely ending:
  • The price breaks the trend (resistance) line and gains a foothold above this level;
  • A new wave appears, with the Hi above the previous momentum-driven wave.
A short-lived movement in the price against the main trend is called retracement, while a longer movement in the direction of the main trend is called momentum. This way, if the trend is bullish, retracement is a temporary drop in the price, while momentum is a longer lasting growth. By contrast, in a bearish trend things work the opposite way. How to correctly open a trade during a descending trend? Sideways trend: Flat 3. Sideways trend (also referred to as flat) is a price movement in a sideways direction without the express upward or downward direction, which is why in this case they talk about a consolidation or call the market detrended. The Hi and Low points are at about the same level. Флет-на-рынке-форекс How to correctly open a trade in a flat market? When a flat appears in the market, the trader is benefitted most by opening trades from channel boundaries. Both buy and sell trades can be opened here. From the channel’s upper bound, a sell trade opportunity opens up. From the lower bound of the channel, a buy trade opportunity opens up. A Stop Loss order is best put beyond the quote’s highest peak in the history of this flat-type movement. Also noteworthy, the trend is regarded as movement during a certain period of time, so in different time frames, opposite tendencies may develop at the same time. The most correct rule is to gradually identify nested trends of various time periods: long-term, short-term, medium-term trends. If the trader is unable to identify the type of the current market trend, which often happens during a correction or a flat when the market moves in a horizontal direction, don’t take any action. Wait until the situation becomes clearer but never trade just for the sake of entering the market if you are not sure. May you have lots of profit, future Forex gurus!

Похожие записи:

Нет комментариев

Комментировать

Вебинары Gerchik & Co

Октябрь, 2018

Параметры сортировки

1Октября17:00- 18:00Анализ рынка акций с Александром Герчиком 01.10.201817:00 - 18:00 Спикер: Александр Герчик

4Октября18:00- 19:00Как заметить «следы» крупного игрока на графике18:00 - 19:00 Спикер: Сергей Заботкин

8Октября17:00- 18:00Анализ рынка Форекс с Александром Герчиком 08.10.201817:00 - 18:00 Спикер: Александр Герчик

11Октября17:00- 18:00Пробой и импульс в трейдинге17:00 - 18:00 Спикер: Виктор Макеев

15Октября11:00- 12:00Анализ рынка акций с Александром Герчиком 15.10.201811:00 - 12:00 Спикер: Александр Герчик

16Октября16:00- 17:00Обзор рынка Форекс и стратегия торговли c Павлом Горбачуком 16.10.201816:00 - 17:00 Спикер: Павел Горбачук

20Октября11:00- 12:00Анализ рынка Форекс с Александром Герчиком 20.10.201811:00 - 12:00 Спикер: Александр Герчик

26Октября17:00- 18:00Спрашивали? Отвечаем! С Александром Герчиком 26.10.201817:00 - 18:00 Спикер: Александр Герчик

29Октября17:00- 18:00Анализ рынка акций с Александром Герчиком 29.10.201817:00 - 18:00 Спикер: Александр Герчик

X