Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

tmbaru

FOREX Trend Following

Recommended Posts

Most trading strategies in the Forex Market can be categorized into categories; Mean Reverting and Trend Following. In this article, we are going to look into details; Trend Following.

Forex trend following is mostly used by professional traders. Amateurs Forex traders and retail traders tend to avoid trading using this method. Analysts have it that most successful Forex traders in the world use this method of trading in their dealings. All you need to do as a trader is to devise a long term trend following formidable strategy which you can use to trade in currencies few hours a day to build long lasting wealth. You have to master the art of trend following currencies to reap huge benefits from the financial market using this method.

Forex Trend Following Definition

Trend following is basically a method of Forex trading that follows up or down trends in a currency pair which h can last for a week or extend for 52 weeks (1 Year). Using this method, a trader aims to get approximately 70% of the trends to make huge margins. Traders usually do not trade frequently but once in a while but makes huge profits from their trades. Forex trend following is one of the most profitable way in currencies trading.

Does Trend Following Work?

This is a question that usually boggles the minds of many traders especially newbies and retailer traders. The answer is yes, it does. Take time and analyze currency pair for a period of time and you will see a trend that lasts for a long period of time. These trends usually reflect economic cycles in the various countries the currencies represent.

How to Devise a Trading Strategy on Your Own

If you are planning to trade long term in the Forex market, then it is of paramount importance that you devise a formidable strategy that you can employ in the long run. Here are ways you can do that perfectly well:

 Utilize weekly and monthly charts to see trends which might be hard to see from a daily chart

 Use various momentum indicators (2 to 3 will do) to confirm your trading signals

 Employ daily charts to time your trading signals

 Enter the trade on breakouts from ranges to new price highs and lows. It is of utmost importance to enter a trade as the trend matures.

 Set a stop loss on entry and stick to it.

Follow these guidelines and you will generate huge profits from currency market in the long run. You will be in a position to execute a deal within an hour and get handsome margins from it.

Why Trend Following is a Daunting Task for Most Traders

Trend following is the most profitable method in Forex trading yet the toughest. Nothing comes on a silver platter and this applies even in currency trading. Before you get to that level of making huge profits from a single trade, you have to exercise patience and be committed to the course. You have to be disciplined and patient to enter the trade only when the trend matures but the truth of the matter is that most traders do not have these attributes. Most Forex traders get so excited when they start making profits and eventually throw their discipline in trading to the winds. This detrimental because a trader does not take ample time to analyze how the market is performing before venturing in the next trade. They just want to trade non-stop and before they realize all the huge profits they have made will be eroded and they start making losses. The worst a Forex trader can do is to submit to his emotions. As a trader you have to instill ice-cold discipline in your ventures if you want to enjoy loads of wealth in the long run.

Conclusion

Forex trend following will help you get great rewards in currencies trading but you have to exercise discipline and patience in your trading. You have to also master the art of ignoring short term pull backs in equity against you. This method of trading has been used by the best traders across the globe who have made millions of dollars in trading in currencies. If others are making it big using this strategy, you can also make it ;)

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • Very long time since I made last post. Thought about posting one chart. Stock name is masked intentionally as I am having position. My views may be biased. My way of viewing chart. Chart is self explanatory
    • Litecoin Price Prediction Today: Daily (LTC) Value Forecast – July 18   LTC/USD Medium-term Trend: Bearish ·         Resistance Levels: $100, $110, $120 ·         Support levels: $90, $80, $70 Yesterday, July 17, the price of Litecoin was in a bullish trend. On July 16, the downward correction ended at the price of $80 price level. The $80 support level was the previous low of April 11 and May 6. The support level is holding as the bulls made an upward move towards the EMAs. On the upside, if the bulls break above the 12-day EMA and the 26-day EMA, the crypto’s price will rise and retest the $140 overhead resistance level. However, the bulls are likely to face resistance at the $120 price level.The MACD line and the signal line are below the zero line which indicates a sell signal.     LTC/USD Short-term Trend: Bullish On the 1-hour chart, the LTC price is in a bullish trend. The 12-day EMA and the 26-day EMA are trending upward because the price has commenced an upward movement. On July 16, in the downtrend, the bears reached a low of $76 but pulled back above the $80 price level.   Yesterday, the bulls broke above the EMAs and commenced ranging below the $94 price level. Today the bulls have broken the $94 resistance level and  are approaching the high of $100.The MACD line and the signal line are above the zero line which indicates a buy signal.     The views and opinions expressed here do not reflect that of BitcoinExchangeGuide.com and do not constitute financial advice. Always do your own research.   Source: https://bitcoinexchangeguide.co
    • CRUDE OIL Corrective Pullback Mode Remains    CRUDE OIL corrective pullback mode remains as more decline is likely in the days ahead. Support lies at the 56.50 level where a break will expose the 56.00 level. A cut through here will set the stage for a run at the 55.50 level. Further down, support comes in at the 55.00 level. Its daily RSI is a bearish and pointing lower suggesting further weakness. On the upside, resistance resides at the 57.50 levels. Further out, resistance comes in at the 58.00 level. A break above here will aim at the 58.50 level and then the 59.00 level followed by the 59.50.00 level. All in all, CRUDE OIL remains biased to the downside nearer term on pullback.  
    • I had used binance and hotforex, first one for bitcoin to altcoins and the second one for EURUSD and they also added BTCUSD and BTCEUR pair too.
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.