Making money on a downtrend?

So in the babypip school it states multiple times that you can make money on a downtrend.

For example when they are talking a bout a “Bearish Rectangle” pattern they say “If we had a short order just below the support level, we would of made a nice profit on this trade.”

Does this mean you can somehow make a profit when the price goes down? For example if you found a “Bearish Bat” pattern you could still make a profit?

Thanks in advance,
Andrew

Yes you short or sell the pair and if price moves down you collect profit. Lets use AUD/USD for an example if you short (sell) the pair you are selling Aussie dollars but are also buying US dollars at the same time. So if the pair moves downs in price that is saying the US dollars has risen in value over the Aussie dollars. Since you are actually buying US dollars the rise in value for the US dollar is your profit.

Well, I like to trade only based on key point of market, it’s much reliable from using micro analysis! So, long time trading style is my best choice! On the other hand, when I see an impulsive move against the market trend then I always wait for pullback pattern, as I know; trading against the market trend is always risky!

Please excuse my mentioning that this entire post appears to have [B]absolutely nothing[/B] to do with the OP’s question at all, Jonathan. It doesn’t begin to answer him. You seem actually to have posted in the wrong thread by mistake, this time? :33:

Yes, it does.

Andrew, I think you haven’t yet appreciated the mechanics of how a forex-trade works, and what “long entries” and “short entries” are. These are the pages that will help you …

[B]What is Forex: What Is Traded In Forex?
What is Forex: Buying And Selling In Currency Pairs[/B]

I think forex trading having two ways opportunities which as trader they can making profit with buy and sell, if likely trend up hence buy will making profit afterward, but if trend down hence if trader sell hence will making profit also, but trend market not always in strong movement, sometime weak and very dynamic movement making trader being confused

Andrew.
Another way to look at it is this.
Say you believe the usd will strengthen against all other currencies.
As usd is the base currency in UsdCad, you would go long here.
As usd is not the base currency in EurUsd, you would go short here.
Exactly the same with trends, if UsdCad has been rising long term, go long and if Eurusd has been falling long term, go short

The beauty of trading. You can make money wherever the price goes (same for stocks, futures, options (not binary, there, you only lose)).

Just look when prices hit a peak (daily, weekly, monthly). The longer is period the price wasn’t there the higher are chances of backtrack.
Look at S&P 500, it’s on historical highs, sooner or later upward forces will fizzle out, just “old bulls” trying to squeeze max from the rally before it caves in. Global economy with low oil prices and deflating EU and Japan is not in best shape so it is probably perfect opportunity to make “a bet of the whole life” :wink: shorting US stock market.
Good luck

You can make money on either direction, every time just always open trades in the opposite direction of me. My losing trades are well over 50%