I would like to know which trend should I look? Short term or long term? Which is better and why?
Hello, ‘Betty333’…
Let me ask you a question back: how much time do you spend on your trading (preparing, executing, analysing, etc.) per week?
This is actually an important part, which could lead you to the right answer…
Cheers.
For generalized long term analysis, the longer term trend is a no-brainer. However for manual trade entries, look for shorter term trends that agree with the longer term trend.
GrixFX has it right…
My question, ‘Betty333’, is relevant to the answer because, to put it very simply and succinctly, if you are planning to trade part-time, say, after or before work, then the short-term or scalping strategies may not work for you, because you will literally have no physical time to keep doing this …
In that scenario, you may prefer to adopt ‘set and forget’ entry orders on a longer-term basis as your preferred strategy, with wider targets to allow for the natural movement of a pair through its ebb and flow over hundreds of pips…
These are just examples, of course, but you get my point…
Cheers.