Prica Aktion

How to identify a trend ?

Greetings to all the forex portal his video lessons on Price Action I often say: "Trade with the trend", "opening trades with the trend increases the chances of success of the deal," etc.But how is this trend most identify?

What is the trend?

trend - it general direction of the market.None of the market does not move in a straight line, so we need to identify the general trend: upward or downward.

Opening of trades in the direction of the trend helps to increase the chances of success.Of course setups Price Action against the trend, too, fail, sometimes very good, but when trading, we can be more relaxed with the trend sincesignificantly reduced the risk of getting a loss.

There are plenty of forex indicators, systems and theories to determine the direction of the current trend in the market.But trade is Price Action implies precisely the rejection of indicators to monitor the situation on the market on the basis of only the behavior of the main indicators - the price itse

lf.Therefore, in determining the trend, we will be guided only by the price, on the basis of the most classic interpretation of the trends in the currency market.


uptrend - is a series of rising peaks and troughs.

That is the basis of this rule, we determine whether there is a bullish trend market.As a rule the presence of rising highs and lows is broken - we are looking for sales opportunities.

on an upward market after the previous low breakdown can be considered a possible change in trend to bearish.

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downtrend - a series of declining peaks (highs) and depression (lows).

Hence deduce a rule:

a reversal of the downtrend can say when the market broke through the previous high.

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I do not understand what is now the trend, how to be?

pretty important point - if you can not understand what is now a trend, and this often happens in the consolidation periods when the market moves in a horizontal direction, just do nothing .

Many make the mistake of believing that they always have to trade.No way.If you take only the "beautiful", clear and understandable setups, this will be much more profitable than trying to grab each item.Be selective in your trades, do not understand where the market is moving now - do not trade, wait for clarification of the situation.

When to enter the market?

As we said at the beginning of this article, the market does not move in a straight line.There will always be setbacks and periods of consolidation.It is in such periods and is included in the position, guided by the basic direction of the trend.

Yes setups Price Action form and pulse movements and work out well-behaved, but safer and more profitable in the end are the inputs on pullbacks.

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That's all, thank you for your attention.And remember - "Trend - your friendĀ» :)

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