Pretty easy, right. No indicators are needed, here. If the diagonal line starts at the bottom left of your screen and the line stops at the top right-hand corner of your screen, you are in an uptrend.
Likewise, if the series of candles forming a diagonal line starts at the top left corner of your screen and ends at the bottom right-hand corner of your screen, the price is in a downtrend.
Next Question: Why do so many traders short the first chart and go long on the second chart?
Answer: Fear of missing out on a huge reversal.
In my next post, I will show how setting the stop correctly and scaling in will help belay that fear.
The better the analysis, the harder or more complicated it will be to follow the trading, the harder it is for me to gain pips. Simply analyze the market and follow the money management to create green pips.
Welcome to the community. This website has amazing educational resources. You can start your learning from there. It’s a long course. Have patience and keep learning. Link Learn Forex Trading at School of Pipsology - BabyPips.com
Right now my broker’s sentiment data shows the majority of their clients with open positions are long on both the uptrend and the downtrend. The long-side bias on GBP/NZD is unexpected but the surprise is that so many are long on NZD/CAD, 67%.
No its another firm, but same principles apply obviously. I suppose the larger the client base, the more reliable the sentiment data, so that might give IG an edge.
You are right. However, that is why we have stop losses.
Did you see that crazy V-reversal on AUD/USD yesterday? Yep, it got me. But now I am back in following the new trend. To enter late carries greater risk, though.
Still, It is worth it if you can get a measured move as I am hoping for here.
Traders should have a clear mindset when trading forex. They should also have a plan of action before entering into any trade. One of the most important factors to successful forex trading is having a firm grasp of its concepts.
