How to determine the trend?
Trend is the most important friend of the trader. Those who are friends with him, always get a profit. Those who trade against him have losses for losses. Why is that? Because it is the trend that shows the direction of price movement for a long time (depending on the time frame of the chart), and the older the time frame, the more you can trust the trend! If the trend shows an upward movement, then it will continue and the likelihood of this is high.
There are two ways to determine the trend. The easiest and most unreliable way is to put an indicator in the terminal and trust the robot. It will presumably show the direction of the trend and draw important lines. Or you can draw these lines yourself, looking at the graph with a keen eye.
In fact, there is no definition of a trend, and there has never been anything difficult. You just need to look at the chart more closely. Each trend has its beginning and continuation, which can end at any moment, but this does not happen often and the trend can last even several months (if it is the other day).
Any trend also has its line of support and resistance. The price bounces off the support line and, going up to the resistance line, bounces off it and comes back. This price move is called a trend corridor. Many trading tactics are built precisely on trade in this corridor. But it is better not to risk and never direct a deal against the main trend movement. This will save you from many mistakes and give a good profit.
Support and resistance lines are drawn at the highs and lows of the trend. It is worth noting that Forex exists for quite a long time, but the trend and flat as it was its main part, it is. He constantly behaves the same as 10 years ago. The same lines and bounces from them. This allowed traders to explore the trend in more detail, and to improve their trading by understanding its importance.
I know several successful traders whose deposit exceeds 10,000 dollars. All of them trade only on the trend! If professionals do this, then it makes sense to do the same.
So, let’s repeat, summarizing, we repeat, how to find the trend on the chart. There are 2 ways, but one of them is better. This is a way to determine the trend manually. This method allows the trader to learn to understand the market independently and provides an indispensable practical experience, and also allows you to avoid indicator errors, which can be mistaken and often does.
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