Hello traders friends, on this occasion we will share interesting information for all of you who are related to Forex trends. There are still many people out there who do not understand well what is the forex trend and its function in the world of the forex market. Because this is very important as your first step in the world of trading, then on this wonderful opportunity we share the complete information so that you are more understanding in seeing the price trail or a series of charts with a certain skew level both downward (downward) and which leads upwards (uptrend). At first glance in your mind must still be full of questions, what exactly is the function of this forex trend? Is it crucial enough to be known by a trader? Let's see the full discussion below to answer your curiosity.
Understanding Forex Trends in the Trading Market
Forex trends are often interpreted as one of the moves that cannot be predicted by every trader, which can point towards the value of currencies in the Forex market (price). Whereas the movement is not formed as a diagonal straight line in one direction, but usually moves like a series of zigzag lines. Well, this term is indeed often seen in everyday life, moreover many people use this method to express a certain situation. This also applies in fores market trading conditions, when the currency is favored by many people then these charts and lines will be shaped like a zigzag, up and down in accordance with current market conditions. Usually, the condition of a falling currency is followed by a zigzag line which decreases following the market price.
In general, movements such as zigzag have a series of waves that are basically sequential but for the level itself is divided into several parts such as the peak level (High / H), higher peak (Hihger High / HH), Higher Valley (High Low / HL) and Valleys (Low / L). From here you should have enough class that the direction of low and high is a definite indicator when market trends are occurring in real conditions, while for high lows it will move up and down and there are several stages to sideways with the term (Sideways). Directions like this that can later provide information to a trader as consideration in making trade decisions later.
Important Functions to Know Forex Trends
In general, every trader who plunges into the forex world must understand well the market conditions before opening or exiting, the important function of knowing the first forex trend is clear from the price of each currency market is always changing and can not be stable, therefore every trader must can understand the terms of the line up and down to determine the next step. Many people say like this "don't fight the trend" but just follow the trend "which means this is very important for you to understand when starting trading, never against the trend but just follow the current according to current market conditions.
In the world of forex, terms like this are indeed quite important for us to learn, especially if you are still having trouble determining the right currency market. Conditions like this also occur when there is a trendy (the term being a trend), so many traders are competing to have it. While in the world of forex, prices that are trending or going up are definitely many trenders who have opened positions to "buy" or buy. If you do this based on the right trend strategy, we are sure you will get a profit to reach the highest level, namely Higher High / HH. Meanwhile, if the price is always going down, many people will do cell positions to pick cuan from the price decline that occurs. Conditions like this are actually quite common in our lives, both have a situation where people will choose to do something that is trending. This can be a real proof that forex is one of the markets that can really provide experience to pick rupiah with the trend method. Even when people who own shops and sell goods at low prices, we are sure hundreds of customers will come continuously. As with forex, both prices go up and down in quite a long time, this becomes a golden opportunity for many traders. when people own shops and sell goods at low prices, we are sure hundreds of customers will come continuously. As with forex, both prices go up and down in quite a long time, this becomes a golden opportunity for many traders. when people own shops and sell goods at low prices, we are sure hundreds of customers will come continuously. As with forex, both prices go up and down in quite a long time, this becomes a golden opportunity for many traders.
Even so, not all traders who really want to follow the trend well, there are some who choose to go against the flow because maybe they have a different strategy. When the trend is rising, many traders choose to sell and when they go down they choose to buy. Why does that happen? What is the reason they do that? Of course this still has to do with future market strategies where prices may turn around. As we stated at the beginning of this article, if the market conditions go up and down like Zigzag, this condition is difficult to predict but it is certain enough to continue to go up or vice versa. You should really be vigilant if you follow a trend that you do not know will turn around. The concept of forex trends is indeed very common as initial learning from novice traders, if you look back, understand and learn forex trends, including one of the technical analysis approaches that you have actually learned indirectly. Many tools you can use to calculate the value of rising and falling trends such as (Price patterns, Moving averages, resistance and support levels).
How Many Types Of Trend In Forex Trading?
The following are 3 types of trends that are enough for you to know in the world of forex.
1. Ranging / Sideway
It can be said that this type can show the consolidation of prices that are being attracted by buyers vs. sellers. This condition is very difficult to know the best point to buy and sell because the direction is not clear.
This condition shows that the movement continues to decline periodically
Conditions where the graph will always follow the price movements that are rising periodically.
In the world of forex, trends do have an important role for every trader to make the best decisions for them, only if not considered properly can bring harm to you. So much information from us. Thanks.