If there is phrase that is most common when it comes
to forex trading, it would have to be "trade with the trend". Well... the thing is....you
hear it a lot, but for some reason, I don't think a lot of traders know how to do
it. That or they just simply don't practice what they preach.
The good news is that there can be nothing simpler than
spotting the trend when you are trading.
The thing is a lot trades use a lot of needless
tools when trying to spot the trend. They tend to use 2 or 3 moving averages, as if that
is supposed to tell you something.
All you need to do is wipe away indicators like
these because they are basically blocking your view as to what is most important when
spotting the trend: THE PRICE.
This is why I wish more people got a forex trading education before they open an account.
Just pull up a simple bar chart and start reading
left to right. Where is the price going? For whatever reason, people want
to make it more complicated than it has to be. There is no reason for it.
If the price begins on the left side and ends
downward on the right, then you know that we are in a downtrend. Vice versa for an
Start off with longer term charts and work your way
down. I like to call this a top-down perspective. For example, if you normally
like to use 5 minute charts, start off with an 1 hr chart, then 30 minutes, then 15 minutes, and
then finally 5 minute chart.
Which trend were all the timeframes going?
If they are all going the same direction, you can definitely feel more confident trading in that
It's really that simple if you want to be a
forex trading millionaire. Obviosuly
there are some other things you can do to further verify the direction of the trend, but this
underlying concept is what's most important.
Remember, if you can't spot the trend just by
looking at a simple bar chart, you are not going to be able to do