The trend is your friend
They say that any one currency pair trends only about 25% of the time, the rest of the time it moves in a range. But truly, catching a pair in a trend can be the bread and butter trades for a currency trader. Once you can identify the trend on your charts, you just only trade in the direction of the trend and its pretty hard to not make money. A trend can usually be identified by a down or up channel. An example of an up trend is on the EURUSD chart currently. The entire month of September price has stayed nicely between the channel lines connecting the tops and the bottoms. So every dip to the bottom channel line is a huge BUY signal. Some traders keep the trade on for days or weeks as long as the trend continues, but they continue to buy or add additional lots on each dip. If price falls below the bottom channel line, this is a signal that the trend is weakening and traders will be taking profits.
February 12th, 2008 at 5:04 am
Top of the morning to you! Wow what a fantastic article about Forex Signal! Your keen insight into Forex Signal is informative and creative. I look forward to reading other articles you have. Thanks.