Forex markets have been researched and studied for over a hundred years. The general
patterns are consistent on all time frames. These patterns are not exact but close enough
to recognize. It is important to know that the price goes up and down in a trend, with the
overall trend heading on a consistent direction.
Traders who ‘trade’ with the trend on larger time frames are more likely to be successful in
capturing larger numbers of FX pips. Also more successful as a trader in general. May I add,
in less time spend in front of the computer and with less stress and emotion.
Here is a general rule of thumb: always trade in the direction of the major trend...not against it.
This applies even if it takes several days or even a week for the latest trend to become obvious.
Here is the quote, we do not know the author of this statement:
"Charts and drawing trend lines offer basic knowledge on technical analysis of FX pips. A trend
usually occurs when three or more lows are lined up. A market that is “trending up†is creating a
series of “higher highs†and “higher lows†where you can draw a line that connects the bottom,
which is the “support line".
The FX pips market trends down when it makes “lower lows†and “lower highsâ€; if you draw a
line that links the top — you have drawn a “resistance line.â€"
Being able to find the trend early is an extremely valuable skill. Some say to wait for 3 higher
highs or 3 lower lowed to determine the trend as you just read. This is accurate and true BUT
you have missed much of the trend if you use this method.
Here is a seldom used KEY to finding the trend early...use momentum indicators and three time
frames.
Of course this statement is simplified but it is not much more difficult than that. You do not have
to spend hours of analyzing charts to find these trends.
If you are asking where can I learn how to trade this way, then go to http://www.forexstrategy
secrets.com. You can sign up for our free Jump Start strategy and gain access to our trading
room for a month. Where you can trade along with successful traders.
If you like what you see then get involved. If you don't think it is a fit for you them move on and
it hasn't cost you anything.
We will make this bold statement. If you trade with us for a month you will never look at the
market the same way again. You will see that you can learn to trade in less time, with less
effort, catch on faster, and have more fun than you ever thought trading could be.
Summary:
Find a trend early on one of 20 currency pairs on a larger time frame. Confirm that trend on
a different time frame. Time the entry on a lower time frame. Learn to find a trend quickly,
confirm quickly, enter quickly. Don't over analyze or think too much just act based on proper
signals.