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

Trend in real terms may be defined as trading in the direction of trend, thus ignoring the trading signals which are directing against the current trends. The trends would remain friendly until the traders treat them as friends and not doing anything against their will and desires. Most of the current trends are defined by looking at the daily charts that include line charts, bar charts and candlestick charts etc. However, those traders who have small cash amounts define trends in terms of 4-hour chart and 1-hour chart. Anyway, daily charts have their own importance because if the hourly signals match with the daily trend, then there are all possibilities of a strong movement along the trend. Most of the traders while examining the charts try to capture the low and high peak of the trade ... Read More

Trend trading is where the big money is in the Forex market. While there is money to be made in counter-trending markets, there is only so much that can be made when the market is essentially moving sideways. Trading when the market trends is where there is the opportunity to make (and if you're on the wrong side without a stop-loss, possibly lose) major money. A market goes into a trend anytime there are more buyers than sellers or more sellers than buyers over a prolonged period of time. This trend can be with prices going up (more buyers than sellers) or down (more sellers than buyers). There is money to be made regardless of which way the trend goes, since all trading is done with pairs. Figuring out the best way to trade ... Read More

Trend is the easiest and the most difficult thing to understand. The difficulty arises because of the time factor. Whenever we talk of trend it has to be related to the context of time. An intraday (relates to action on that particular day only) price chart may show a significant trend, which is contrary to a trend recognizable on a daily price chart, which may be contrary to a trend on a weekly chart. Success depends on recognizing and trading the appropriate trend. Successful investing depends on recognizing the short, medium or long-term trend and their correction (Rallies and Dips) inside the larger trend. We will usually be trading when at least the short term and intermediate term trends are in the same direction. The ideal will be when all three trends are in unison, but this is not ... Read More