Easy Ways to See Forex Market Trends
In the world of trading, trends are a representation of market forces. Trend is one way to find profit opportunities in forex trading. Traders must follow where the market is moving to get maximum results, traders must identify the current trend. Without a good understanding of trends, it is certain that traders have difficulty determining market entry positions.
Uptrend or bullish conditions, where prices move up, can be an opportunity to open long positions. While the opportunity to open a short position can be sought during a downtrend or bearish, namely when the price has decreased. However, knowing the uptrend or downtrend is not enough. Often the emerging trend is not strong enough and suddenly reverses direction again. In fact, sideways often occur, namely conditions when prices fluctuate up and down without any sign that prices will strengthen in one direction. Here's an easy way to see forex market trends:
1. Trendline
The trendline is the connecting line between the two highest prices to determine the direction of the downtrend or the link between the two lows to determine the direction of the uptrend.
2. Moving Average
Moving average is the average price movement over a certain period. The variable value of the moving average itself is the period or period of time for the collection of the data. The way to determine the direction of the trend with the moving average indicator itself is quite easy, namely when the shorter period moving average is above the longer moving average, the price movement is experiencing an uptrend and vice versa for a downtrend, namely when the long period moving average is above the moving average which has a period of time. shorter.
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