How To Trade Forex Trends & Dominate The Market

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Hello and Welcome to the ditto educational series that will provide you with the skills you need to become a forex trader!

Today we are going to be talking about trends, you have heard me mention them in other videos and touch on what they basically are but we will analyse them today in a bit more depth.

I believe everyone getting into forex has heard trading expression "the trend is your friend." The reason why that phrase is so popular is because quite frankly it’s true and trend identification and analysis is key to a well rounded trading plan.

Forex trendlines can be quickly identified and are used in almost all charting analysis due to its usefulness and simplicity. Lets now discuss what trendlines are, how we can accurately draw them and how to apply them when trading.

THE TREND IS YOUR FRIEND!

As we already know there isn’t any single stand alone trading strategies that will give us a one hundred percent win ratio. However what we generally want to do as traders is improve our chances of making winning trades and identifying high probability trade set ups. One of the most comprehensive is trend trading.

Trend trading is a simple way to exemplify your existing strategy and reduce strategy imperfections by identifying the strongest trends in the market.

When our entries are not necessarily the best or when temporary shifts in the market occur due to factors such as news releases our losing trades can always come good when trading the direction of the markets trend.

As we can see here we have a strong bearish or downward trend. The market retraces here more than we may have expected however depending where our stop loss was placed this potential losing trade was able to continue on to become a profitable trade as we were on the side of probability.

If we measure the amount of downward movements vs the amount of upwards movements in any given bearish trend, the direction of the trend always prevails at yielding more pips in movement. The same would be true if the trend were reversed.

HOW TO DETERMINE THE TREND

Determining trend is seemingly obvious as we move to the larger time scales. When you look at a wider view...

Видео How To Trade Forex Trends & Dominate The Market канала Ditto Trade