how to successfully use a trending strategy
trends are used a lot in forex trading to assist in giving traders a sense of direction in which the value of the currency pair they are tracking will go As yoy may have noticed, currencies never travel in a straight line. A trend averages out the movements and gives the direction of the trade
There are literally hundreds of signals and indicators available, along with trading robots. Common sense and the ability to follow the basic rules all traders follow are all you need to trade successfully, so keep it simple be patient, and follow the basic rules
As you can see, there is an up channel, a side channel, and a down channel. Now, the only way you can make money with forex trading is with the movement of the currency pairs. Now, this is where your common sense comes in.
It makes little sense to trade when things are moving sideways, as the commodity value is not changing, so in a situation where things are moving sideways, most traders do not start trades. However, when the sideways channel is broken and confirmed with the help of indicators, traders begin trading in the new direction of that trend
Once you have decided on a trading trend channel, you will need to know how to enter and exit trades. As you can see from the bounce of the channel lines, this gives you an indication of how to enter a trade and how to set your stop-loss. Remember to always set your stop loss .no trader ever wins every trade so minimize your losses with a good money management policy
Now, for taking part, you have a choice You can let it run until the channel changes direction or you can make smaller trades using a scalloping strategy within the trend Challenge: Remember, trend is your friend, Always trade with the trend and exercise patience, or find another currency pair to trade if this one starts moving.
in conclusion, trend channels can always be found and creating them is as simple as drawing two lines this you can do easily yourself; you dont have to understand why the currency pair price moves up and down Just a bit of common sense works wonders check out a few currency pairs and you will always be able to draw charts, but before you trade, always have a good money management plan and never break the basic trading rules
