Signs the Forex Market is Starting to Weak and Will Turn Around

One way to look for profit opportunities in forex trading is to detect price trends. 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.

To measure the strength of the trend, traders only need to analyze the high position during an uptrend and low position during a downtrend. If the trader sees a higher high, or a new high that is higher than the previous high, it means that the uptrend is still strong. On the other hand, if a trader sees a lower low, or a new low that is lower than the previous low, it can be indicated that the downtrend is still strong.

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