Thursday 27 December 2007

Understanding trends in Forex trading

The 5EMAS Forex System depends on understanding trends.
There are two types of market: trending and trend-less.

Trending - Steady elongated price movements with less than a 45-degree angle with occasional pauses, profit taking, or resting periods.

In a Trending market, you have:-
Uptrends - A pattern of higher highs and higher lows.-

Downtrends - A pattern of lower lows and lower highs.

Trend-less - Erratic price movements which are often steep (greater than 45-degree angle) and cannot be sustained, so must reverse. Although the movements can move many points in a short period of time, they often result in very little net price movement over time.

In a Trend-less market, you have:-
Choppy - An erratic pattern of higher highs and lower lows.-
Sideways - A narrow pattern of lower highs and higher lows.

While up-trend and down-trend days can offer excellent trading results, choppy markets often create stop-outs, while sideways markets produce little in either direction. Your trading objective is to get into a trending market and ride until you make your target objective.

If all this sounds a bit mysterious, you will find it's all explained in the 5EMAS Forex system book. It will teach you not only how to identify trends, but when it's appropriate to trade AGAINST trends - which is so much more profitable as long as you know what you're doing! NO OTHER SYSTEM teaches you this as far as I know (let me know if I'm wrong!) If I'm right, you can do better with the 5EMAS Forex system than with any other Forex trading system or any other Forex training package. Give it a try as you can't lose with their cast-iron guarantee.

And learn more about Forex at http://www.bizwrite.co.uk/Forex/forexindex.html

1 comment:

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