If you look at any forex chart you will see big trends which last for many weeks, months or years and it is these trends that yield the big profits. Forex trend following looks easy but it's not as easy as it looks unless you understand these key points. Understand them and you can enjoy currency trading success... Why Big Trends Will Always Occur They will always occur, because currencies reflect the underlying health of the economy of the country they represent and boom and bust cycles are long term and reflected in currency strength and weakness. Currencies will always exhibit long term trends. If you can lock into and follow these forex trends, you can of course make a lot of money but most trader's don't have the discipline to do it - if you ... Read More

If you look at any chart of currencies you will see that they move in trends. These are of course easy to spot in hindsight. Timing your entry levels and following these trends is of course harder and the aim of all currency traders, however 95% fail and lose their money. If you are using or want to use technical analysis you must know the basics of trend following and here are some tips to help you make profits. Let’s look at 3 types of trend and then look at some tips for trading them: 1. Long term Trends As currencies reflect the underlying health of the economy and the economic cycle there are currency trends that last months or even years and this is the primary trend. 2. Intermediate Trends These last from anywhere between a ... Read More

Trend following is without a doubt, the most successful trading method. Strategies such as "buy and hold" are inferior, when compared to the amazing success of properly following a trend. Basically, a trend is an overall direction in the market. It can be an up, down, or sideways direction. Trends can be found on any chart. It does not matter what time frame it is. Let us consider a daily chart in the futures market. This means each bar represents one full day of trading. A short-term trend could be anywhere from a few days to a few weeks. A mid-term trend could be anywhere from a few weeks to a couple months. A long-term trend could be several months to a year. The longer a trend is intact, the more significant it is. Every trader needs to have a trend to make ... Read More

The method of trend following goes against the old Wall St. Philosophy of buy low and sell high. It takes advantage of the market whether the current trend is up or down. Traders using the trend following method begin trading after a trend is established. Other traders attempt to envision what the market will do, trend followers wait for the market to do it. The dimensions of the trading account and the volatility of the issue are the first determining factors in how much to invest. Traders who use trend following use software that's programmed to exit when an unexpected falling trend in their issue happens. Then the traders wait to work out if the trend gets back on track before re-entering. It's really about staying with a longtime trend and getting out if the trend changes direction. The single most important ... Read More