Knowing which technical indicator to use in the identifying of trends is vitally important as much as making profits from the forex market.

Trust me, the trend can go agaoinst you if you don't have a good strategy, if you can't identify it, and if you don't know which technical indicator to use. You can be sure the trend will be your enemy at this time.

For the purpose of study, we will discuss on which technical indicator you can use to identify trends.

You should also be aware that trend do not occur as usual as sideways movement. Sideways occurs all the time, but when trends show up, it is an opportunity for you to tap into it and enjoy the ride to profits making.


As an example, currency market have shown to have more long-term trends than many other markets. These long-term trends as we know from previous discussions are caused as a result of macroeconomic elements.

In the history of the forex market, the analysis have shown that the periods that trend occurs are only 1/3, while that of no trend accounts for 2/3 of the market price over a period of time.


Making the situation more difficult is by using one or two technical indicators to identify the direction of the market, and then open a position based on this analysis. This type of approach opens traders to the trend/no-trend paradox. So you will usually find many forex traders closing a position and then realizing that the main and real trend is just unfolding and starting to move. Apparently, they miss out the action.

Again, there are traders who hold on to an open position, thinking a trend will come out of it, whereas there is no trend at all.

In other not to be caught in this trend/no-trend paradox, there are several indicators and techniques that will be shown to you to help you determine when trends are coming into existence.

The essence of this information is to give you an indication of your real entry point, and your real exit point. Also you get opportunities to know what risk management strategies will work for you. You apparently do not need to set up a lot of techniques, but you can get just a few techniques and turn profits into your accounts daily.

An interest thing to do in forex is cashing in on short-term trends. It is sometimes difficult to identify a trend, and when you do not get a trend, that doesn't mean you have no traders to make that day.

If you want to use this trading strategy, you need to two time frames in other to identify this short-term trend. The first one is an overbought -oversold indicator to get a good entry point into the market, and the second is a trailing stop. This trailing stop helps you protect your profits on good and viable trades.

The trading strategies of many fores traders are that they assume that the market will stay in between a given range. But you can only give this assumptions if you use the right indicators to back up the reasons. A large percentage of the time, you will discover that the market prices moves back and forward with a resistant and support level, or randomly flunctuate. The other percentage of time, the market is seen to move in a persistent direction of price. This simply means that the trends certainly break over or above the resistant and support levels.

Well, in as much as many traders have benefitted from using this strategies, many other traders who try to exploit these trends have failed and have lost a lot of money in that process. The only way to use this strategy of cashing in on short-term trends is to be able to locate trend signals of when to enter and get out of the market.

To be successful, you need to identify these entrt points, and then also limit your losses by employing the use of good and sound risk management techniques. As a aspirant of a successful trader, you need to focus on your trading strategies and let your profits come to you, and cut your losses to the barest minimum.

As part of these informations articles given here, we will later be talking about how the system of trading works for you.

The currency market, or forex market has many opportunity for you to make money, but you also have to "opportunity" to lose money. Dealing with the major currencies which are the US dollars, Euro, Japanese yen, British pounds, Canadian dollar, Swiss franc, and the Australian dollar.

Certainly more than 85 percent of all daily trade involves the major currencies.

If you trade forex on a good platform, you would not need to be calculating your profits and losses with few cents and dollars, the platform is designed to automatically calculate it for you.

All you need to do is look into your account and see what's there, and if it is losses, sorry. But we expect that you will take advantage of certain forex resources to help you determine your ability and capacity to survive as a forex trader.

Calculating your profits and losses or knowing how it is calculated will enable you understand the general principles of its calculation. For a proper understanding of how this is calculated, some examples will be given so that you can have a vivid illustrations of the principles. In this forex account, this calculation was made: The current bid/ask quote for the EUR/USD is 1.2200/1.2203. This means that you can purchase 1 euro for 1.2203 dollars, and you can see 1 euro for 1.2200 dollars.

So in the case where you go long on this currency pair, that is you buy this pair, you will need to pay $122,030. This is because the size of a lot of the EUR/USD is 100,000 units. So if your anticipation and speculation is right, and your current price is now at 1.3000/13003, you have made a gain of about 800 pips. This means that the price went up with 700 points.

Now selling this currency pair will be at your bid price which is usually the lower price. Now you have to sell the 100,000 units at about $130,000.
Subtracting your initial buy price of $122,030 ($130,000 - $122,030), you get a profit of about $797. This profit is not bad for a one day trading, and with consistent planning and correct speculation, you can earn much more than that. You also have to be aware that the losses invloved in forex is very great, as you can lose all your deposit, so getting the correct planning strategy is the key.

Education first, then trading next.