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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
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. 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.
Check out Trading In The
Buff to Learn How To Trade
Forex Successfully Just Using Price
Action.

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