When a collection of data points are plotted on a chart you may start seeing the general direction in which a currency pair is headed towards. We’ve all heard the saying “The trend is your friend”, and while it sounds nice it doesn’t really teach us anything about trading a trending market or how to identify one.
It’s all about pattern recognition and being able to accurately identify key pivot points on a price chart.
Here’s a great live example
I agree with you. This is where many new traders fail. I think they do not spend enough time learning how to properly recognize charts, what needs to be present for a chart to be confirmed etc. All goes back to education in my opinion.
hahaha one common mistake is if a newbie understands something and gets a bit too ****y with it, I mean we might know the strategy but tend to neglect the small details that makes it count so yeah people should focus more on how to properly recognize the charts
Trending markets are ideal for swing traders with larger price targets, whereas range-bound markets are more suitable for scalping and day trading where traders seek quick profits with smaller price targets. Trend lines and channels help traders to determine optimal entry and exit levels.
its a very fine reply
As so many things do in forex and trading in general. You can’t skip the education aspect and expect to jump straight into making money. Should be a disclaimer that all newcomers have to sign!