“The trend is your friend” is much more than a catchy rhyme in the forex market. It can give you an indication on the general direction of the market. When analyzing a trade, the trend should be your guide post. Trend analysis is based on what happened in the past, which gives you an idea of what may happen in the future.
While currencies typically trend for weeks or months, they don’t just move up or down. They move in waves. Therefore, a trader must know whether today is likely to be a trending day or a counter trending day and trade accordingly.
You can identify the trend by the patterns that the price movement forms. They indicate the history of upward or downward price movements. My trading platform allows me to quickly and accurately identify monthly, weekly and daily trends directly on my trading chart, regardless of that time frame, without having to use individual charts and monitor the gap for each coin. For example, most traders can have a daily chart to see how it has evolved in the last days to a month +. They can also have an hourly chart open to easily see the movement of the last 2-3 days. But if you are a smart trader, you will develop or find tools that SHOW you all of this on ONE chart, freeing you up to see more currencies and spot more opportunities!
It is important to have a general picture of the trend for accurate trading analysis. If you look at the trend history of the currency, you will see that the price moves in cycles that are often described as waves. You can identify the “peaks” and “troughs” of extreme highs or lows that often predict a reversal of price movement by revealing a higher high price or a lower low price.
If the market is not actually trending up or down and is basically moving sideways, it is considered to be in a range and that is when we wait for it to break out of that range and resume the trend. Through the mentoring program, you learn to use your elite tools that identify specific conditions when the trend is not your friend at that particular time and how to deal with it. It is always best to trade the trend, but if the conditions represent different circumstances, you must be versatile. “Just roll with the flow.” Be patient, continuously analyze market conditions and choose winning trades regardless of whether the market is trending or in range.
