Trading With The Trend In Forex


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 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 uptrend.

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 direction.

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 it.        




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